California joins other states with the same bills or laws including Arizona, Vermont, and Florida. Arizona State has measures recognizing legality of crypto for tax purposes
Blockchain records, smart contracts, and digital signatures will soon become legal forms of record. This may happen if a new bill before California State Assembly becomes law. These records will no longer be deniable just because someone presents them to a legal agency in an electronic form.
The assembly received the bill on February 20 from Assemblyman Ian Calderon. It will redefine the electronic record laws within the state.
“A signature that is secured through blockchain technology is an ‘electronic signature’ and also updates the term ‘contract’ to account for smart contracts or self-executing pieces of code that trigger when certain conditions (like a reaching a particular block number on a blockchain) are met.”
To become law, the governor will need to approve it as well as other state lawmakers. However, the business licensee providing electronic records will still need to comply with individual sections of the U.S. money transmission laws. Otherwise, the agencies receiving the documents will suspend them.
Crypto regulation the primary focus for more states
Regulation is now part of a central focus by many countries and governments over the last few months. However, there are many examples of a positive move in regulating cryptocurrencies. Many consider blockchain as a technology that can aid safe storage of data and information without hack risks.
Some other states also have bills or laws seeking to include blockchain-related digital signatures, smart contracts, and transactions as recognizable records. These include Arizona, Vermont, and Florida.
Arizona State Legislature has bills that are seeking to recognize Bitcoin and other cryptocurrencies as legal assets for use for tax purposes. One of them is already through the Senate Finance Committee. The first reading of the bill regulating crowdfunding and ICOs is scheduled for June 2.