Iowa Senate Introduces Blockchain Bill to Regulate Smart Contracts as Law
Iowa is the latest state in the U.S. to introduce a bill targeting blockchain technology and smart contracts. The bill aims to level the playing field between smart contracts and traditional contracts.
The state of Iowa introduced a partisan bill that recognizes and regulates blockchain technology and its smart contracts logic similar to traditional arrangements. Senate Bill 303, presented to the chamber by Republican State Senator Mark Lofgren, states there will be an oversight on smart contracts and anyone using a distributed ledger technology will be liable to similar laws as currently stipulated for traditional record keepers.
“A contract shall not be denied legal effect or enforceability solely because an electronic record was used in its formation,” the bill reads, “or because the contract is a smart contract or contains a smart contract provision.”
Additionally, the bill also adds the concept of security through DLTs to define an “electronic record” and “electronic signature.”
The state of Iowa has been experimenting with blockchain technology and DLTs with the Iowa Democratic Party’s Caucus once trying out a mobile voting app built on the blockchain.