This is particularly important for the enforceability of smart contracts. Which would automate transactions or other contractual obligations according to binding, pre-established rules. The advocates of smart contracts have long used the proverb “the code is the law.” The new bill, if passed, could make it a statutory reality.
According to public records, the bill reached the committee on October 2, 2020. A summary of the bill, H.R. 8524, describes its objectives as follows:
“To amend the Electronic Signatures in Global and National Commerce Act to clarify the applicability of such Act to electronic records, electronic signatures, and smart contracts created, stored, or secured on or through a blockchain, to provide uniform national standards regarding the legal effect, validity, and enforceability of such records, signatures, and contracts, and for other purposes.”
Introduction of Blockchain Laws
The Electronic Signatures in Global and National Commerce Act are co-introduced by Republican Darren Soto. He has a long history of developing and helping to pass legislation related to blockchains.
This includes, most recently, updating the Consumer Security Technology Act. To include the Digital Taxonomy Act and the Blockchain Innovation Act.
On September 24, Congressman Schweikart had introduced the Digital Product Exchange Act of 2020. The legislation would create a single opt-in national regulatory framework for digital commodity trading platforms under the jurisdiction of the CFTC.
Once again, Congressman Soto is a co-sponsor, along with Republicans Mike Conaway, Tom Emmer, Dusty Johnson, and Austin Scott.
The Blockchain Caucus project, of which both Schweikart and Soto are co-chairs, was founded in 2018.
It faces an uphill battle to propose legislation that can skillfully navigate the complex and overlapping jurisdictions of the various U.S. federal regulators concerning new financial technologies.
The U.S. On the Same Level As The Rest of the World
With this latest bill on digital signatures, congressmen are in tune with similar events in other countries.
Regulators in the United Kingdom revised their legal frameworks to clarify the interaction of smart contracts with British courts from 2018.
The United States is making an effort to regulate not only the crypto ecosystem but also to give it a place in society. With an effort to legitimize blockchain firms to make them enforceable by law is a test.
In May, Congressman Paul Gosar introduced the “Cryptocurrency Act of 2020.” A legislative proposal that aims to address the regulatory problems facing the ecosystem in the U.S.