Bob Hertzberg, a Democrat Senator who represents California’s 18th Senate District, put forth a legislation permitting Blockchain technology for certain business practices.
Even though Bill 838 was first introduced by Senator Hertzberg in January, public filings show that the measure has been picking up steam in recent days. On April 18th, 2018, the State Senate's Banking and Financial Institutions Committee referred the measure to the Judiciary Committee after advancing it with a “do pass” recommendation.
SB 838 is designed to introduce cryptography-fueled security into the issuance and transfer of corporate share certificates, which would be recorded and kept on or by means of blockchain technology or one or more distributed electronic networks, as specified. In addition to issuance and transfers, the bill extends to the names of all of the corporation’s stockholders of record, the address and number of shares registered in the name of each of those stockholders.
Not only did the Senator introduce the bill but also he is educating his peers about the public ledger, pointing out that 11 of Forbes’ Fintech 50 for 2018 rely on the blockchain or are somehow engaged with cryptocurrencies. He explained that there are “multitude” of other use cases for the blockchain beyond volatile cryptocurrencies and suggested applications such as voting and land titles.
In a press release, Herzberg commented: “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.”
Hopefully, this bill could pave the path for businesses to access blockchains. In other recent regulatory relaxation for blockchain, the governor of Tennessee signed a bill recognizing the legal authority of the technology and smart contracts in conducting electronic transactions while protecting the ownership rights of certain information secured by Blockchain.