A senator from the state of Califonia is working to push through legislation that would allow blockchain technology to be utilized in formal documentation, specifically corporations’ articles of incorporation.
Bob Hertzberg, the Democratic representative for the San Fernando Valley, presented the bill dubbed ‘SB 838’ to the Senate Banking and Financial Institutions Committee at the end of the last week.
The legislation is designed to provide cryptography-fueled security into the issuance and transfer of corporate share certificates, that would be stored on, or by means of, the blockchain. The bill would also extend to “the names of all of the corporation’s stockholders of record, the address and number of shares registered in the name of each of those stockholders”.
Senator Hertzberg spoke out in a press release, describing the bill as the first step needed to achieve widespread adoption of the decentralized technology across California.
“The world around us is changing, and government must adapt to these rapidly evolving times. California needs to continue our legacy of taking on new and developing technologies, especially ones like blockchain, which is being embraced worldwide and presents a strong level of security that is resistant to hacking,” Senator Hertzberg stated in the press release.
Not only did Senator Hertzberg introduce the bill, but he has taken it upon himself to educate his peers in Congress about the benefits of the public ledger system. As he noted, 11 of Forbes’ Fintech 50 for 2018 rely on blockchain or somehow utilize cryptocurrencies.
He discussed with his colleagues the versatile nature of blockchain technology, acknowledging that there are far more uses beyond Bitcoin, and suggesting it could be in the process of voting.
UCLA and Berkely have both recently developed blockchain labs to promote blockchain innovations, as Senator Hertzberg pointed out.
Several Western states have already adopted, or are looking into, blockchain technology; Arizona recently passed positive blockchain legislation that validates data stored and shared among corporations on the blockchain. Colorado and Wyoming have also both pursued blockchain bills.
Senator Hertzberg’s SB 838 will be presented to the Senate Judiciary Committee in May.