With the Blockchain Technology Act coming into effect in Illinois, this would make smart contracts admissible as evidence in courts. Blockchain-based records would be recognized as a viable alternative to paper-based records and statutory exempt from local taxation. Blockchain Technology Act would also encourage companies to expand businesses that could increase jobs and internships in the state.
Blockchain-based records are admissible in courts.
The Blockchain Technology Act of Illinois reads, “a smart contract, record or signature may not be denied legal effect or enforceability solely because a blockchain was used to create, store or verify the smart contract, record or signature.” Other states that had passed similar laws include Arizona and Vermont.
The law shields the blockchain industry from local government interference.
This Blockchain Technology Act would shield the blockchain companies from local government interference as they cannot impose taxes and regulations or require licensing or permits on blockchain systems. Alison Mangiero, president of blockchain technology company TQ Tezos, said that the law ensures that businesses and individual community members will not have to navigate a patchwork of local blockchain regulation.
Tatyana Ruderman, counsel at InfoLawGroup’s Chicago offices, said that this law would bolster companies looking to utilize blockchain-based records systems.