Iowa House Says Yes to Blockchain and Smart Contracts

The State of Iowa House has unanimously passed a bill, Senate File (SF) 541, that facilitates electronic transactions. According to the Gazette, the bill formally recognizes smart contracts. It also confirms the blockchain as a secure and reliable ledger for storing information.

Smart Contracts and Blockchain Formally Recognized in Iowa

As per the update on Mar 29, the bill gained Senate approval earlier this month. With the bill’s express passing, the use of smart contracts—which is central to innovations like DeFi and the wildly popular NFTs, could open up more opportunities.

Precisely, the use of smart contracts in binding business terms and other negotiations would likely explode in popularity due to the accompanying clarity.

Besides, it is a step in the right direction, especially when crypto continues to find widespread adoption but with active obstacles slowing down progress due to the absence of fitting regulations.

SF541 Details

The bill states that entities using smart contracts shall not be denied enforceability.

All registration of rights or ownership will be valid if there are broadcasts on the blockchain.

Denial would only arise when the transaction in question relates specifically to the transfer of rights in question.

An extract from the bill read:

“A person who, in engaging in or affecting interstate or foreign commerce, uses distributed ledger technology to secure information that the person owns or has the right to use retains the same rights of ownership or use with respect to such information as before the person secured the information using distributed ledger technology. unless in connection with a transaction with terms that expressly provide for the transfer of rights of ownership or use with respect to such information.”

Grounds for Cryptocurrency Regulations

Despite this positive progress and foundations providing for regulations of cryptocurrencies like Bitcoin, Rep. Steve Hansen says the legislature would likely revisit the topic. He cites the widespread use of cryptocurrencies in tax evasion and fraud.

As BTCManager reports, Greg Abbott, the Governor of Texas, supports crypto and Bitcoin regulation. He wants Texas to follow Wyoming’s path to eventually become a blockchain hub.