Will Delaware cause another ICO BOOM and provide legal status to blockchain records?

We all have heard the Lil’ Dicky songs and jokes regarding all businesses in the United States that seem to use Delaware as their haven for operations (at least on paper).

Half of Fortune 500 companies are incorporated in Delaware already.

But, if Governor John Carney keeps passing pro-blockchain legislation, then we will see the best Initial Coin Offerings (ICOs) finding a new home in the great state of Delaware.

Many ICO founders in the ID space have been anxiously waiting for something like this; giving validity to blockchain ledger records. Gov. Carney signed into law three bills that specifically address the legal status of blockchain records; SB182, SB183 and SB194.

Let’s take a minute and break down what this all really means; SB182 and SB183 amend the limited partnership and LLC codes, while SB194 addresses and amends the state’s statutory trust laws.

In layman’s terms, all three laws provide clarity regarding the use of blockchains as legal instruments. Though not “illegal” before, there was no case-precedence or laws that addressed records created and/or stored on blockchains. Also, if it would be considered legally binding in a court of law.

Though I am not a lawyer, rather a law-school dropout who pursued entrepreneurism; this is still very good news. These bills can now be used as legal precedence for what is called “soft” law. These bills aim to remove the uncertainty about the immutable ledger records that blockchain provides.

The language is very concise in SB182 and SB183, “specific statutory authority… to use networks of electronic databases (examples which are described currently as ‘distributed ledgers’ or a ‘blockchain’) for the creation and maintenance of … records for certain ‘electronic transmissions.”

SB194 clarifies that ownership of trusts can be proven by electronic means. It also states that “the vote of the trustees may be provided by electronic transmission, including by use of electronic networks or databases, including distributed electronic networks or databases.”

One thing that the bill fails to mention is “smart contracts.” This is left to a larger debate for contract law in the near future.

The entire team at Bridge is ecstatic about the forward-thinking concept of blockchain IDs coming to fruition in our legal system. Bridge ID now has legs to stand on as an admissible record in legal proceedings and proof of transaction.