The U.S. state of Iowa has introduced a bill that would recognize use cases of distributed ledger technology (DLT) and smart contracts in law.
- Introduced by Republican State Senator Mark Lofgren on Wednesday, Senate Bill 303 specifies that, unless explicitly stated otherwise, any parties using DLT to secure information have the same rights as those involving records secured by traditional means.
- It also amends the definition of "contract" to include those secured using DLT and further includes smart contracts.
- As such, no contract would be denied legal effect solely because it is a smart contract.
- "Electronic record" and "electronic signature" would also include all those secured using DLT.
- The midwestern state has previously introduced legislation exempting virtual currencies from "certain security and money transmission regulations" and "individual, corporate, franchise, sales and use, and inheritance taxes.