California’s 18th Senate District representative Senator Bob Hertzberg filed a bill to allow Blockchain technology for specific business practices last week, Equites.com reported, April 23.
Senate Bill 838 would enable corporations to apply “Blockchain technology or one or more distributed networks” which would enable to document the names of all of the corporation’s stockholders on record, their addresses and numbers of shares registered in their names, and all issuances and transfers of stock of the corporation.
According to Senator Hertzberg who is “determined to work on governing for the next generation, not the next election,” the introduction of SB 838 before the Senate Banking and Financial Institutions Committee would initiate “a secure method to issue and transfer corporate share certificates.” [The bill] is also reportedly a primary move into the integration of Blockchain technology in California in a limited capacity. In a press release, Hertzberg said:
“The world around us is changing, and government must adapt with these rapidly evolving times. California needs to continue our legacy of taking on new and developing technologies, especially ones like Blockchain, which is being embraced worldwide and presents a strong level of security that is resistant to hacking.”
The governor of Tennessee signed a bill in March which acknowledges the legal authority of Blockchain technology and smart contracts in electronic transactions. Protection of ownership rights of certain data secured by such technology will also be protected by the legislative act.