Tennessee signed a bill recognizing the authority to legally use Blockchain technology & smart contracts for electronic transactions on March 22, according to the legislative tracking site Legiscan.
A summary of the bill reads that it “recognizes the legal authority of blockchain technology & smart contracts in conducting electronic transactions.” The bill also makes a provision that, “protects the ownership rights of certain information secured by blockchain technology.”
Senate Bill 1662 was signed by Governor Bill Haslam little more than three months after its introduction on January 18 of this year, passing the Senate and House with no opposing votes. The bill was sponsored by Republican Senators Steven Dickerson and Richard Briggs, and Democratic Senators Jeff Yarbro and Lee Harris.
Blockchain technology is defined in the bill as “any distributed ledger protocol and supporting infrastructure, including blockchain, that uses a distributed, decentralized, shared, and replicated ledger, whether it be public or private, permissioned or permissionless, which may include the use of electronic currencies and/or electronic tokens as a medium of electronic exchange.”
A smart contract is defined in this bill as an “event-driven computer program, that executes on an electronic, distributed, decentralized, shared, and replicated ledger that is used to automate transactions.” The particular bill notes that “no contract relating to a transaction shall be denied legal effect, validity, or enforceability solely because that contract contains a smart contract term.”
Individual US states have been passing several cryptocurrency related bills since the new year.
In February of this year, Georgia introduced a bill to accept crypto for paying state taxes and license fees, while earlier in March, the state of Wyoming passed a bill creating a new asset class for cryptocurrencies, effectively exempting them from securities regulations in the state.