After a long time in the legislature, the General Assembly of the state of Delaware has almost unanimously approved the use of distributed accounting technologies to store and send corporate records; becoming the first locality of the United States in accepting the legal use of blockchain at enterprise and state level.
SB 69 was introduced on March 20 this year by former Delaware Gov. Jack Markell after several companies in the industry pushed for the incorporation of DLT tools into their registration methods; being introduced to the General Assembly the first days of May so that the senators will deliberate the destiny of the same one.
On July 1, journalistic sources reported that with almost all votes in favor, and only one against, the legislative bill was approved and will be taken to the governor’s office for its final signature. In this way, citizens and entrepreneurs of Delaware will be able to maintain and create new storages of corporate records information through blockchain.
Likewise, all the data stored will have the possibility of being transmitted via the Internet and monitored publicly; providing greater transparency and security to the ecosystem. The law expounds on this specific subject in the following way:
“Any administrative registration by or on behalf of the corporation in the normal course of its business, including its registration of shares, accounting books and book minutes, may be maintained in, or through, or in the form of, any storage device or method, or one or more electronic database networks (including one or more distributed electronic networks), provided that the saved mode records can be converted into clearly readable paper form within a reasonable time.”
The bill aims to promote investment in the state -movement that Vermont and New Hampshire have also made- and will begin to take effect on August 1, following the signing of the document by current Governor John Carney.
Symbiont, startup involved in creating the law, emphasizes that one of the great benefits of this kind of initiative is the ability to digitize all processes and automate them:
“The bill solidifies its leadership in corporate registration services by enabling end-to-end digitalization for securities management. Banks are willing to use the automated filing procedures that allow for collateral lines.”
The passage of this law becomes a landmark in the legal history of accounting technology distributed in the United States; An initiative that could open the doors to the decentralized tools in the governmental and business sector for a large scale application.