Delaware Senate Passes Blockchain Bill
A bill that would clarify that Delaware corporations can use blockchain technology for maintaining their internal records has been passed in the state Senate. Although geographically small, Delaware is home to a large number of corporations, owing to its favorable business laws.
Introduced on May 5, Senate Bill 69 aims to legally recognize electronic databases, including those created on distributed ledgers or blockchain, for the creation and maintenance of stock ledgers and other business records. The bill also seeks to legally recognize blockchain-based proxy voting.
The bill states that any records administered by or on behalf of the corporation in the regular course of its business, including its stock ledger, books of account and minute books, may be kept on, or by means of, or be in the form of, any information storage device, method, or one or more electronic networks or databases (including one or more distributed electronic networks or databases), provided that the records so kept can be converted into clearly legible paper form within a reasonable time.
The Senate passed the bill with 20 yes and 1 not voting. The measure now moves to the Delaware House of Representatives, with the Judiciary Committee now having to consider the bill within 12 days. If passed, the bill would be enacted into law as soon as August 1.
