Delaware Finally Signs Blockchain/Stocks Law

Investing, News, Regulation | July 24, 2017 By:

Weeks after the bill passed the legislature, Delaware Governor John C. Carney Jr. has finally signed a bill into law that recognizes stock trading on the blockchain.

The tiny US state punches much larger than its weight when it comes to corporate interests. The state is headquarters to many big firms, thanks to its business-friendly laws. The new law – amended from a prior statute – advances blockchain as a record-keeping tool and could lead to similar adoptions by other states.

Delaware Senate Bill 69 was introduced on March 5 of this year, but finally made it before the state House of Representatives before it went into recess. The bill passed in the state Senate 20 to 0 and in the House by 40 to 1. The bill actually was conceived back in May, 2016, when the then-governor, Jack Markell, first set a goal of embracing smart contracts and blockchain technology.

The Delaware Bar Association’s Corporation Law Section approved amendments to the bill in April. That created statutory authority for businesses to use blockchain for corporate records maintenance.

Delaware has more than one million corporate entities, including 64 percent of Fortune 500 companies, according to DelawareOnline. Their taxes and incorporation fees account for almost a quarter of the state budget. There are more corporations registered in the state than residents.