Smart contracts now recognized under Tennessee law

The governor of Tennessee signed a bill on Thursday that legally recognizes blockchain data and smart contracts under state law.

According to the data from Legiscan, it took several months to pass the bill but it sailed through each stage of the legal process unanimously.

The text of the bill explains:

“As introduced, recognizes the legal authority to use blockchain technology and smart contracts in conducting electronic transactions; protects ownership rights of certain information secured by blockchain technology.”

The law also recognizes smart contracts as having legal power, stating that “no contract relating to a transaction shall be denied legal effect, validity, or enforceability solely because that contract contains a smart contract term.”

 


Write: Sara Bauer


 

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