California introduces bill to make blockchain records permanent

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The state of California has introduced a bill that would seek to make the use of blockchain tech in public record keeping a permanent feature of governance, in a move that could spark similar steps in other states across the United States.

Under current rules, companies in California are permitted to use blockchain records for tracking stock transfers and issuances up until January 1, 2022. The new legislation would remove the limitation of time, effectively making the rules permanent for companies operating in the state.

The new bill was first introduced to lawmakers on February 19, and will now progress through the senate before a determinative vote on whether to incorporate the new measures onto the statute book.

The legislation is due for hearing on April 7, and would make the use of blockchain records a permanent feature of securities governance in the state if it passes a final vote of the state Senate.

At the earlier first reading stage back in February, the Senate approved the bill by 32-4, and it is thought there remains broad support for the measures.

Among other things, the new legislation changes the definition of blockchain tech to describe a system of decentralized, mathematically verifiable data, which relies on distributed ledgers to “store specialized data in the permanent order of transactions recorded.”

This is a progression from the current definition, which describes blockchain technologically as a “mathematically secured, chronological and decentralized consensus ledger or database.”

The new bill will be welcomed by companies that have taken the opportunity to use blockchain records in tracking issuances and stock transfers since the temporary measures were first introduced.

It comes at a time of increasing support for blockchain tech at government level across the United States and the wider world, allowing for more efficient record keeping in security issuances and a multitude of other functions.

See also: Rep. Patrick McHenry discusses “Blockchain Policy Matters” with Bitcoin Association’s Jimmy Nguyen