The state of Delaware has passed amendments to state law that regulate trading stocks on a blockchain, according to sources whose names are not reveal
The state of Delaware has passed amendments to state law that regulate trading stocks on a blockchain, according to sources whose names are not revealed.
The measurement is reportedly part of a broader series of amendments that legally recognize numerous records being stored on a blockchain.
“Now, you have something to [write] about!!! History being made.”, said the director of the Global Delaware state initiative, Andrea Tinianow, who spoke to coindesk.com.
Still, details regarding the vote are scarce. One of CoinDesk`s sources explained that the bill passed with a single vote against. This vote is considered to be the final barrier before the state adopts the law change.
“We look forward to helping Delaware corporations enjoy the benefits of this innovative new amalgamation of law and technology.”, as the Chair of the corporate law section of the Delaware bar association, Matthew O’Toole, told CoinDesk.
He has expressed an opinion that the state`s governor John Carney will sign the bill into law by the end of July, with an effective date August 1.
Delaware is a state, where there many incorporated companies. Therefore, the amendments can have huge implications on the companies to be listed in the future.
The bill is supposedly paving the wat for potential large-scale issuance of stock on a blockchain. As CoinDesk noted, it was developed under the guidance of blockchain lawyer Marco Santori of Cooley LLP and Caitlin Long of blockchain startup Symbiont.
“The bill solidifies its leadership in corporate registry services by enabling end-to-end digitization for administration of securities. Banks are eager to use the automated filing procedures it enables for liens on collateral.”, said Symbiont’s Long as quoted by the report.
The bill was introduced last year by the former governor, Jack Markell, who reportedly complied with the requests made by several companies.