The U.S. state of Connecticut could soon authorize the utilization of blockchain smart contracts in business.
Introduced on March 7 by the Commerce Committee of the Connecticut General Assembly, the house bill 7310 proposes that blockchain smart contracts should be legalized for commerce in the 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,” according to the bill.
If passed, the bill would provide equal rights to companies that utilize smart contracts on a blockchain or distributed ledger with those that utilize more traditional approaches to secure data related in a transaction.
Last August, Ohio passed a similar bill, while a Florida effort failed to pass in October when they proposed to treat smart contracts and blockchain ledgers as legally binding methods of information storage.
A trade association representing the blockchain industry, the Chamber of Digital Commerce, assessed new smart contract laws last year and “concluded that enactment of state legislation regarding smart contracts is unnecessary and potentially undermines the growth of the industry.”
At the time, the organization stated:
“Existing legal frameworks for defining and giving legal effect to contracts cover smart contract technology, and nothing regarding smart contracts ought to change existing definitions or the application of current contract law. Additional laws are largely unnecessary and will only serve to confuse the application of current law.”