Blockchain Bills Introduced In Florida and Nebraska

Blockchain, News, Regulation | January 12, 2018 By:

Lawmakers in Florida and Nebraska have introduced bills focused on blockchain, smart contracts and cryptocurrencies.

On January 9, Florida state representatives James Grant and Jackie Toledo introduced House Bill 1357. The bill establishes multiple provisions pertaining to blockchain ledgers and smart contracts. It states that these could be treated as legally-binding methods of data storage, provided that such measures do not break any pre-existing laws or regulations.

The bill states that a document or agreement that is safeguarded via blockchain remains in an electronic form and is an electronic record, and therefore should not to be treated as invalid.

The bill states, “A contract may not be denied legal effect or enforcability solely because: 1. An electronic record was used in the formation of the contract. 2. The contract contains a smart contract term.”

Nebraska state senator Carol Blood submitted a similar bill to the Nebraska Legislature on January 3. Bill 695 would allow for blockchain’s use for notarization and the establishment of a document’s provenance.

According to the bill, “A smart contract or a contract that contains a smart contract provision may exist in commerce. Such contract shall not be denied legal effect, validity, or enforcability solely because such contract is a smart contract or contains a smart contract provision.”

The bill also prohibits cities and villages and counties from taxing or otherwise regulating the use of blockchain technology.

The intent of the bill is to to promote economic growth and the efficient operation of business and government in Nebraska through the electronic exchange of information and legally binding electronic transactions. The bill states that in order to facilitate the electronic exchange of information, the state must establish means to ensure that electronic transactions are legally binding and enforceable.