A Bill to legally recognize smart contracts and records stored on a blockchain has been introduced in the Ohio Senate.
Senate Bill 300, titled Revise Electronic Transactions Act/blockchain/smart contracts, was introduced by Senator Matt Dolan.
It amends sections of the Uniform Electronic Transactions Act to include blockchain records and smart contracts as electronic records.
The proposed law makes smart contracts to be legally enforceable as any other contract.
The Bill states that blockchain technology can be used to store electronic information and provide ownership rights.
An amendment to make it clear that smart contracts may be used for legal documents has been incorporated in the new legislation.
The law allows individuals to sign records or contracts on a blockchain.
It is seen as advantageous for corporate houses in Ohio.
If the Bill is passed, Ohio will become the second state in the United States to give legal validity for data stored and shared on a blockchain.
Arizona Governor Doug Ducey signed a Bill to this effect last month.
Delaware was the first state in the United States to provide a legal basis for trading stocks on a blockchain.
Bills aimed at evaluating blockchain applications for data storage purposes are pending in the legislatures of Nebraska and New York.
by Joji Xavier
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