The State of Iowa House unanimously passed a bill called Senate File (SF) 541 to facilitate electronic transactions. The bill officially recognizes smart contracts. It also validates blockchain as a secure and reliable ledger for storing information.
Smart contracts and blockchain officially recognized in Iowa
According to the update on March 29, the bill received approval from the Senate earlier this month. With the bill moving rapidly, the use of smart contracts at the center of innovations such as DeFi and wildly popular NFTs could open up more opportunities.
Certainly, the use of smart contracts in binding business terms and other negotiations will likely gain popularity due to the accompanying clarity.
The bill states that the applicability of organizations using smart contracts will not be denied.
If posts are available on the blockchain, all rights or ownership records will prevail.
The denial will only occur when the transaction in question specifically relates to the transfer of rights in question.
The reasons for cryptocurrency regulations
Despite this positive progress and the fundamentals that have led to the regulation of cryptocurrencies like Bitcoin, Representative Steve Hansen said the legislature will likely reconsider the issue. It addresses the widespread use of cryptocurrencies in tax evasion and fraud.