On March 29, the Iowa House of Representatives passed a bill aimed at legal recognition of transactions and registrations made through smart contracts. The SF541 bill got Senate approval earlier this month.
Under the new law, smart contracts will have the same legal status as regular contracts, and the distributed general ledger technology will be considered as a secure electronic archive of records. With regard to smart contracts, the draft law stipulates:
“The law states that a contract cannot be invalid just because the contract is a smart contract or contains a smart contract clause.”
The bill states that any registration of rights or property will not be canceled by broadcasting on the blockchain network, unless the transaction is specifically related to the transfer of the related rights.
“ A person who, by engaging in or influencing foreign trade or foreign trade, uses distributed ledger technology to protect the information he or she has the right to use, and maintains the same ownership or use rights in relation to this information as it was by that person who provided it. Information that uses distributed ledger technology, “adds invoice”, unless it relates to a transaction whose terms explicitly state the transfer of ownership or use of this information. ”
The bill won House approval without competition on March 29 when MPs voted 94 to 0. Earlier this month, the Senate passed the bill with ease with 47 votes to zero.
Democratic spokesperson Steve Hansen suggested that implementing the bill would eventually lead to broader regulation of cryptocurrencies, including Bitcoin (BTC), according to the Eowa daily The Gazette. Republican Rep. Jeff Shipley said the bill at the moment is more about defining tariffs than rules, adding that he believes Bitcoin will also fall within those tariffs.