Topic: [2018-08-31] California Legislature Passes Blockchain Working Group Bill (Read 133 times)

The California Legislature has passed Assembly Bill 2658, which provides a legal framework for the recognition of blockchain technology in the state’s insurance code.

Introduced by Democrat Ian Calderon, the bill sought to amend Sections 1624.5, 1633.2, and 1633.75 of the Civil Code, Section 25612.5 of the Corporations Code, Section 16.5 of the Government Code, and Section 38.6 of the Insurance Code, with relation to blockchain technology, electronic signatures, and smart contracts.

New Inclusions and Definitions

Under previously-existing California law, the Uniform Electronic Transactions Act offered legal protection and enforceability to the use of electronic signatures in creating contracts, specifying that in the events of a requirement for writing or a signature, an electronic record or signature should suffice.

No mention was made, however, of electronic records or signatures secured using blockchain technology, which was a point of legal ambiguity for blockchain-based businesses. The new bill expands the definition of “contract” under California law to include “smart contract,” which provides legal basis for use of blockchain-based electronic signatures in sealing contracts.

It also specifies that any individual doing interstate or foreign commerce using blockchain technology to secure information they own or have rights to has access to the same ownership and usage rights in California.

Read more: https://www.ccn.com/california-legislature-passes-blockchain-working-group-bill/