Blockchain technology and other forms of the distributed ledger have finally found a place in the legislation of the United States. The Washington State Senate pioneered a way for the bill which will encourage the development and acceptance of these emerging technologies within the country. The bill codifies that blockchain powered services and products licenses will give legal recognition for implementing the necessary standards in the market.
The introduction of SB 5638 was done by the Washington State Senate which is related to the acknowledgment of the distributed ledger technology validity. This bill is said to get added in the already existing ‘Washington Electronic Authentication Act’ that facilitates the reliability of electronic messages and signatures in order to have an apt licensing mechanism for digital signature certification.
The novel blockchain technology will revise the above act with significant development and encouragement of this industry. In addition to this, the bill has also recognized the official definition of blockchain and distributed ledger technology. This implies that there is a defined niche for this segment in the commercial market of the United States, as mentioned on CryptoSlate. However, the journey of this bill is not yet complete it has gone through the first stage of reading and is now passed on to a committee which will conduct detailed research and analysis for the advised legislation.
It is speculated that the introduction of this bill will enhance the technological development of Washington State which already is the base of some major world-leading companies such as Google, Facebook, Microsoft and Amazon to name a few. Formal recognition in the form of legislation will accelerate the blockchain and crypto-innovation within the state.
Why Is There A Need Of Regulation?
The requirement of regulation is highly based on the technological possibilities, its behavior and success pattern in the coming years. There are continuous changes in the technologies with their evolvement over the time as mentioned by Crowdfund Insider. The requirements required a few years back might not serve the same purpose with the pace of time. Therefore, there is a need for a regulatory system that can monitor blockchain technology requirements and their uses.[The views and opinions expressed in this article are those of the authors and do not necessarily reflect the views and/or the official policy of the website. ]