California legalizes blockchain data and smart contracts

A California bill that would create a legal framework for legalizing blockchain technology at the state level has been approved by the state legislature and now awaits the governor's signature.

The credit for adopting the document goes to California Democrat Ian Calderon. The press has already dubbed the bill “Calderon's Law,” perpetuating the merits of the politician. A new state bill allows California to introduce blockchain-related legislation to legalize and facilitate record keeping using DLT.

The bill would amend the California Civil Code, Corporations Code, and Insurance Code to legalize the use of secure blockchain-enabled data and smart contracts in domestic and foreign commerce. The document is important for its definitions of key terms and concepts of distributed ledger technology and the crypto industry.

First of all, the document defines blockchain as “a mathematically supported, chronological and decentralized ledger or database.” 

In addition, the retention of ownership rights of a legal entity that uses blockchain technology when carrying out trading operations is legally secured. An electronic signature is also recognized as completely legal. Among the important key definitions legally prescribed in the Calderon Law are “blockchain technology” and “smart contract”. In addition, the concepts of “electronic signature” and “electronic record” have been revised. The bill also includes a new concept of recording based on blockchain technology in order to legalize the maintenance of records using it. 

In essence, such a legislative introduction of key concepts of the blockchain industry means the transition of the cryptocurrency sphere to a new, official level of existence. 

Some US states do not intend to lag behind in the legalization of innovative technologies and have signed bills that form working blockchain groups. At the beginning of the summer, the Governor of Connecticut signed a bill to create a working group to develop a plan to create an enabling environment for the blockchain industry in the state. In May, the New York State Legislature moved to consider a similar bill to create a focused blockchain group.