This US Bill Recognizes Smart Contracts as Binding and Enforceable By Law
Rep. David Schweikert of Arizona,on Oct 2, sponsored a new bill–H.R. 8524–to the House Committee on Energy and Commerce. It seeks to amend and clarify the applicability of the Electronic Signatures in Global and National Commerce Act.
Code is Law?
If passed, the new act will make good of the “code is law” adage, recognizing blockchain digital signatures as valid and enforceable by law. Smart contracts are immutable, only executing when pre-set conditions are true.
It is especially important in smart contracting where binding contracts launch from the blockchain.
Part of the bill read:
“To amend the Electronic Signatures in Global and National Commerce Act to clarify the applicability of such Act to electronic records, electronic signatures, and smart contracts created, stored, or secured on or through a blockchain, to provide uniform national standards regarding the legal effect, validity, and enforceability of such records, signatures, and contracts, and for other purposes.”
Darren Soto is the Co-sponsor
A major highlight in this bill is that its co-sponsor is Rep. Darren Soto from Florida– the co-chairman of the Blockchain Caucus.
He has a long history of developing and successfully passing legislation that supports the development of blockchain. He is keen to help see the approval of blockchain-pro bills and shape crypto policies in Congress.
His latest efforts saw the updating of the Consumer Safety Technology Act to include the Digital Taxonomy Act and the Blockchain Innovation Act.
The Digital Taxonomy Act defines what digital assets and digital units are, guiding the Federal Trade Commission (FTC) and helping prevent unfair trade practices. On the other hand, the Blockchain innovation Act requires the FTC to compile a report on how blockchain aids in consumer protection.
Regulation Help Shape Crypto
The success of crypto and blockchain mainly depends on how policymakers view the technology.
Although some of its value propositions are frowned upon by regulators, there are many other uses of blockchain that will ultimately help boost the economy upon integration.
In September, BTCManager reported of a new order by the National Superintendency of Crypto Assets and Related Activities (SUNACRIP) that makes Bitcoin mining legal in Venezuela.