Tennessee now legally recognises blockchain transactions and smart contracts

The governor of Tennessee has signed a bill that now “recognizes the legal authority of blockchain technology and smart contracts in conducting electronic transactions”. It also “protects the ownership rights of certain information secured by blockchain technology” under state law.

The bill was signed by Governor Bill Haslam on Thursday, according to legislative tracking site LegiScan (it was introduced in January).

The bill defines blockchain technology as quoted below:

Blockchain technology is defined as distributed ledger technology that uses a distributed, decentralized, shared, and replicated ledger, which may be public or private, permissioned or permissionless, or driven by tokenized crypto economics or tokenless. The data on the ledger is protected with cryptography, is immutable and auditable, and provides an uncensored truth.

According to the bill smart contract is defined as:

an event-driven program, that runs on a distributed, decentralized, shared, and replicated ledger and that can take custody over and instruct transfer of assets on that ledger.

The bill states that:

“Smart contracts may exist in commerce,”

adding that “an event-driven program, that runs on a distributed, decentralized, shared, and replicated ledger and that can take custody over and instruct transfer of assets on that ledger.”

Similar laws have been proposed in Florida and Nebraska for implementation. Recently Wyoming passed a bill to create a new asset class for cryptocurrencies, Georgia passed a bill to accept crypto as state tax and for licenses.

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Sources:

The bill: http://wapp.capitol.tn.gov/apps/Billinfo/default.aspx?BillNumber=SB1662&ga=110

Tennessee Passes Bill Recognizing Blockchain, Smart Contracts For Electronic Transactions

Smart Contracts Now Recognized Under Tennessee Law

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