Blockchain Tech

Tennessee passes a bill recognizing blockchain and smart contracts

March 27, 2018

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Tennessee passes a bill recognizing blockchain and smart contracts

The general assembly of the State of Tennessee has passed a bill that legally recognizes blockchain data and smart contracts under state law.

The bill signed by Governor Bill Haslam last Thursday was sponsored by Republican Senators Steven Dickerson and Richard Briggs, and Democratic Senators Lee Harris and Jeff Yarbro.

According to legislative tracking site LegiScan, the text of the bill is the following:

“As introduced, recognizes the legal authority to use blockchain technology and smart contracts in conducting electronic transactions; protects ownership rights of certain information secured by blockchain technology.”

The summary of the bill defines blockchain technology 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.”

The law recognizes smart contracts as having legal power.

“This bill allows for smart contracts to exist in commerce, and specifies that no such contract relating to a transaction will be denied legal effect, validity, or enforceability solely because that contract contains a smart contract term.”

Let us remind that starting from this January different US states have been passing several crypto-related bills. For example, this month Wyoming passed a bill creating a new asset class for cryptocurrencies. In February another state, Georgia, introduced a bill to accept crypto for paying state taxes and license fees.