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Blockchain Technology Moves Forward

Jun 12 | 2018  by

By Beth Florkowski of Fausone Bohn, LLP posted in News and Press on Tuesday, June 12, 2018.

Jim Fausone, Esq.

Proposed legislation in Ohio looks to join the state with Arizona and potentially Tennessee, Florida, and California in recognizing smart contracts and electronic records that are stored using blockchain technology. Matt Dolan, a republican senator in Ohio, introduced legislation that would amend the Uniform Electronic Transactions Act.

If passed, the language in the bill suggests that smart contracts would be legally enforceable as any other contract, and that electronic records and information can be stored using blockchain technology. Additionally, the bill would recognize ownership rights of an individual’s information that was stored using blockchain technology.

Senate Bill 300 states:

“Notwithstanding any other law, a person that, in or affecting interstate or foreign commerce, uses blockchain 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 that information as before the person secured the information using blockchain technology.”

Passage of this bill would provide a significant step forward for Ohio in creating the necessary legal framework to legalize this innovative technology. Further, it would make Ohio the first Midwestern state to integrate it. Companies wishing to utilize blockchain technology, smart contracts, and the ability to pay taxes with cryptocurrency will be drawn to Ohio over competing markets. Specifically, many of the progressing developmental projects in the Detroit market have emphasized the preference for attraction of innovative technology companies – a task that could be difficult in the future if they aren’t able to develop similar legislation.