Illinois Legalizes Blockchain Contracts
With the new year Illinois became the latest state to recognize smart contracts and other blockchain-based records as legal instruments.
The state’s “Blockchain Technology Act,” sponsored by Rep. Keith Wheeler (R), took effect Jan. 1, opening a slew of potential new legal scenarios for blockchain-based contracts. These contracts are now admissible as evidence in court, recognized as a viable alternative to paper-based records and statutorily exempt from local taxation.
“A smart contract, record or signature may not be denied legal effect or enforceability solely because a blockchain was used to create, store or verify the smart contract, record or signature,” the law reads in part.
Illinois joins other U.S. states in recognizing smart contracts in legal settings. Vermont led the charge with its 2016 move to make blockchain records admissible in court. One year later, Arizona passed similar legislation recognizing blockchain signatures.
The Illinois law extends the same legal recognition already enjoyed by paper contracts to blockchain contracts and agreements so that they are recognized as legally binding in the eyes of the state.
It also shields the blockchain industry from local government interference, meaning cities and towns cannot impose taxes and regulations or require licensing or permits on blockchain systems or those who use them.
“The law ensures that businesses and individual community members will not have to navigate a patchwork of local blockchain regulation,” said Alison Mangiero, president of blockchain technology company TQ Tezos and a proponent of the bill.
https://www.coindesk.com/illinois-legalizes-blockchain-contracts
