Blockchain Technology Now Recognized By Law In Washington State
As of April the 26th, Jay Inslee, the Governor for Washington State officially signed into law SB 5638 – which is an act that recognizes ‘the validity of distributed ledger technology.' As of the striking down of this act, it encourages the implementation and further development of blockchain technology, SB 5638 officially recognizes the legal use of blockchain technology for application in commerce, digital signatory solutions.
The act also amends already existing legislation, provide firm definitions of the underlying technology.
Known more colloquially as the Washington Electronic Authentication Act, its original purpose was to bring about and incentivize the use of ‘reliable electronic messages' in commerce across the state, as well as allow blockchain's use in order to ensure that ‘electronic signatures are not denied legal recognition.'
In contrast to burdening businesses with a framework of regulations and requirements that can prove over burdensome with regards to time and resources, such as using paper signatures, the Washington Electronic Authentication Act allows businesses to make use of the latest technology in order to truly streamline commercial activity.
One of the ways that this blockchain infused bill would help existing legislation is by effectively expanding the reach of the Electronic Authentication Act. Allowing it to include ‘encouraging the development of distributed ledger technology' to the broader legislation.
This act provides a more definitive legal definition for blockchain as well as distributed ledger technology to State law. If you're curious about the kinds of changes involved in this new bill, check it out here.
This new legislation was sponsored by Sharon Brown, Ann Rivers, Randi Becker, and Shelly Short – four of the Republican Senators for the region.
One of the major organizations that has proven pivotal in the passage of this new legislation includes the Washington Technology Industry Association. With its members including the COO of Storm – Arry Yu, the CEO of Atonomi – Vaughan Emery, Head of Development for the NEO blockchain – John deVadoss, CEO of Pithia – Lawrence Lerner among a number of other supporters.