In Delaware, it’s now legal to trade stocks over blockchain platforms — so says a new state law.
Delaware Legally Embraces Blockchain Technology
Eager to keep on top of technological advancements, with only one dissenting vote, Delaware legislators passed a series of new amendments to accommodate blockchain technology initiatives.
The law will likely go into effect on August 1st of this year.
Delaware: A Corporate-Friendly State
Delaware notoriously caters to corporations. (Fun Fact: There are more companies registered in Delaware than residents.) As such, the state’s early blockchain embrace isn’t surprising. As Matthew O’Toole, Delaware bar association corporate law chair, explained to CoinDesk.com: Delaware wants to stay “at the forefront of corporate law and in the lead in terms of enabling the use of ‘distributed ledger shares.'”
Private Sector Reps Helped Draft Delaware’s Blockchain Bill
Delaware legislators sought the guidance of a well-known blockchain attorney and fintech executive when drafting the bill.
We’re in the midst of yet another exciting technological time. Blockchain technology is a game-changer that could force some market remodeling. Industry insiders speculate that blockchain platforms could eradicate finance middle men, which would shatter the current banking ecosystem.
Caitlin Long, of blockchain startup Symbiont, helped shape the legislation. She praised the measure, extolling in an interview: “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.”
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Kelly / Warner assists startups and established businesses with some cryptocurrency and blockchain legal matters. Get in touch today to see how we can help.
Castillo, M. (2017, July 02). Delaware House Passes Historic Blockchain Regulation. Retrieved July 14, 2017, from http://www.coindesk.com/delaware-house-passes-historic-blockchain-regulation/