Bill Giving Legal Recognition To Blockchain Records Re-Introduced To US

Should a new bill set to be brought before Congress be passed, blockchain networks’ digital signatures will be both recognized and enforceable within the US. The bill itself will allow for smart contracts to be recognized as legally binding, which would allow for enterprise adoption of blockchain technology.

A New Act For US Crypto Regulation

The bill, aptly titled the “Blockchain Records and Transactions Act of 2020,” was introduced by Rep. David Schweikert, an Arizona Republican congressman. Alongside this, the bill has been co-sponsored by Rep. Darren Soto, which stands as Schweikert’s Democratic counterpart from Florida.

This bill aims to amend the US legislation when it regards to electronic signatures in commerce. The plan is to extend this applicability to electronic signatures, records, or smart contracts stored, created, or otherwise secured both on or through the use of a blockchain. Furthermore, the bill aims to provide a uniform national standard in regard to the validity, legal effect, as well as the enforceability of these signatures, records, and contracts, as well as for other purposes.

A New Push For Regulation

Back in 2018, the bill had already been introduced, but only managed to fizzle out on the floor of the House, not even coming to a vote. However, should this bill be passed now, it will allow for legal enforcement when it comes to smart contracts, as well as other digital signatures stored, created, or secured within a blockchain network.

This bill stands as the US’s latest efforts to try and regulate the digital currency industry, while the industry itself continues to gain mainstream adoption as it grows. Back in September, two new bills were introduced to the House of Representatives. The first bill sought to make the US Securities and Exchange Commission (SEC) the authority to determine whether or not a digital currency is a security. The second bill allowed the Commodity Futures Trading Commission (CFTC) to gain regulatory power when it concerns digital currency exchanges.

Big Players In The Fold

One of the central figures in the US’s push for crypto regulation is Darren Sato. Sato, a lawmaker from Florida, had co-sponsored the Digital Commodity Exchange Act of 2020, the Act itself seeking to harmonize national regulations when it comes to exchanges. Furthermore, Sato stands as a co-chair of Blockchain Caucus, which stands as a bipartisan Congressional group that has continuously worked towards laying down the regulatory groundwork for blockchain adoption.