California passed a law defining the terms Blockchain and Crypto

  California passes the bill defining the terms Blockchain and Crypto

Regulations

A draft law designed to modify California legislation to create legal grounds for the implementation of crypto-related technologies has been approved by the state legislature. The assembly law 2658 modifies the California civil code, the government code, the company code and the insurance code to legalize the use of data protected by blockchains and smart contracts in local and foreign trade. The document contains important definitions of some key blockchains and cryptographic terms.

Read also: New Bill clarifies the encrypted taxation in Poland

The California state legislature adopts DLT Bill

The Californian Democrat, 32 years old, a member of the Ian Calderon Assembly has achieved considerable success in his efforts to complete a draft definition of basic terms relating to cryptocurrencies and the underlying distributed ledger technology (DLT). The state legislature has recently approved its bill of the Assembly n. 2658 which introduces the legal definitions of "blockchain technology" and "smart contract" and revises others as "electronic record" and "electronic signature" to legalize and facilitate the keeping of records through DLT. The draft is co-sponsored by Democratic Senator Bob Hertzberg.

Several important laws will be amended through the adoption of the bill. This will include changes to the provisions of sections 1624.5 and 1633.2 and the addition of a new section 1633.75 to the Civil Code of the State. The act also modifies Section 25612.5 of the Code of Corporations, Section 16.5 of the Government Code and Section 38.6 of the Insurance Code relating to electronic registrations.

 California passes the law defining the Blockchain and the Crypto Terms

The current Uniform Electronic Transactions Act of California specifies that a record or signature can not be denied the effect legal or enforceability only because they are in electronic form. It also states that a contract can not be denied the legal effect or the enforceability only because an electronic register was used in its constitution. The act clarifies that if a law requires that a registration be written, or if it requires a signature, a registration or electronic signature should comply with the law.

The law 2658 aims to revise the provisions of the act that define the "electronic registration" and "electronic signature" to include a record or signature protected by blockchain technology. It would also add the term "intelligent contract" to the legal definition of "contract". In addition, the draft specifies that a person using blockchain technology to protect information in connection with interstate or foreign trade retains the same property and use rights as

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Ian Calderon

L & # 39 introduction of legal definitions that desc The key terms relating to DLT technologies and cryptocurrencies are, in general, a remarkable merit of the Calderon bill. One of the important new provisions states that "Blockchain technology means generalized distribution technology that uses a distributed, decentralized, shared and reciprocal ledger, which can be public or private, authorized or without permission, or driven by cryptocurrencies or tokenless". (c) added to Section 1633.2 of the California Civil Code states that "data on the ledger are protected with cryptography, immutable, controllable and" provides an uncensored truth. "

Another new text, 1633.2 (p), defines the term" intelligent contract "as" an event-based program run on a distributed, decentralized, shared and replicated accounting record that can take custody and instruct the transfer of activity on that register. "And in 1633.2 (e) of the revised act, the authors of the amendments have made it clear that" Contract ", as defined in the law, includes smart contracts: additions to section 1633.2 (h) and (i) of the Civil Code now note that "A record that is protected through blockchain technology is an electronic record" and "A signature that is protected through blockchain technology is an electronic signature." [19659007] Bill 2658 was approved State Senate, August 23rd and Assembly, August 27th, after both houses have made several amendments since it was introduced into the California legislature at the start of this year. law, must be signed by Governor Jerry Brown.

What do you think of the new bill? Share your opinions on the topic in the comments section below.


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