Blockchain-Based Businesses Receive Legislative Boost!

By Cameron Abbott and Jessica McIntosh

The Midwestern state of Ohio has last week become one of the first states in the US to pass legislation which recognises the use of blockchain technology, and as a result blockchain data and transactions will now have legal bearing in the State of Ohio.

Governor John Kasich says the legislation was introduced with a clear focus, that is, to treat data and smart contracts stored through blockchain technology as electronic records and to promote the role of blockchain technology in a range of industries, not just through cryptocurrencies such as bitcoin. This legislative boost will allow the use of blockchain technology in various sectors from real estate to health care.

Perceived benefit for Ohio?

For the State of Ohio, the legislation means the State becomes attractive for businesses who wish to expand their blockchain and R&D operations. An exercise which is undeniably gaining traction.

Ohio State Senators have all stressed this legislation shows the State’s willingness to embrace new technology and a commitment to being at the forefront of innovation also it was a reoccurring sentiment that it was simply necessary in order for Ohio to compete for new investments and jobs.

We will await with keen interest to see the true implications of this new legislation and whether its publicised appeal will live up to the high expectations. We would expect at the very least that many other jurisdictions will follow in the competitive market to attract high growth technology companies across a range of industries.

Copyright © 2019, K&L Gates LLP. All Rights Reserved.