More States Are Recognizing Smart Contracts
The legal recognition of smart contracts continues to gain traction as several U.S. states have signed blockchain legislation into law. Delaware was the first state to offer a legal basis for trading equities on a blockchain in 2017, while in the same year Arizona passed a bill recognizing blockchain signatures and smart contracts. Tennessee followed with similar smart contract legislation shortly thereafter.
While this is a positive development, it should be noted that these legislative efforts are not uniform. For example, Tennessee’s smart contract law language differs from Arizona’s, as the former is more opaque in terms of how terms such as “contract” and “executed” are defined.
As more states develop their own legislation, organizations will have greater certainty and guidance when deploying their own blockchain-based solutions.