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Connecticut Lawmakers Seek To Legalize Smart Contract Use In Commerce

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Lawmakers from the U.S. state of Connecticut have introduced a bill that calls for authorizing and legalizing the use of blockchain technology's smart contracts in commerce conducted or initiated in the state.

The partisan house bill 7310 titled "An Act Authorizing the use of Smart Contracts" was introduced by the House Commerce Committee to be enacted by the Senate and House of Representatives in Connecticut General Assembly (CGA).

The bill says "Smart contracts may be utilized in commerce conducted or initiated in this state. No contract relating to a transaction shall be denied legal effect, validity or enforceability solely because such contract is executed through a smart contract."

It adds that any record or contract that is secured through distributed ledger technology (DLT) shall be considered to be in an electronic form and an electronic record.

The bill also says any record or contract and cryptographic signature that is generated and stored through distributed ledger technology shall be considered to be in an electronic form and to be an electronic record or signature.

According to the bill, "Smart contract" means an event-driven computer program that executes on an electronic, distributed, decentralized, shared and replicated ledger that is used to automate transactions.

Recently, lawmakers from Colorado introduced a bipartisan house bill that called for conducting a study on the potential applications for blockchain technology in agricultural operations in the state.

The bill directs the Commissioner of Agriculture in the state of Colorado to convene an advisory group to study the potential applications for blockchain technology in agricultural operations and to report to the general assembly in 2020 with its findings and recommendations for legislation, if any.

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