Illinois formally recognized smart contracts and blockchain-based records as legal instruments in a law titled the Blockchain Technology Act.
Now, the state identifies blockchain as “an electronic record created by the use of a decentralized method by multiple parties to verify and store a digital record of transactions.”
As part of this development, Illinois joins states like Vermont and Arizona, which passed similar laws that make blockchain records admissible in court and recognize blockchain signatures, according to CoinDesk.
The following are key aspects of the law:
- Shielding the blockchain industry from local government interference.
- Recognizing blockchain contracts and agreements as legally binding.
"The law ensures that businesses and individual community members will not have to navigate a patchwork of local blockchain regulation," Alison Mangiero, president of blockchain technology company TQ Tezos told CoinDesk.
The law is regarded as having a positive impact on the future of blockchain innovation and implementation.