California Bill Would Legally Recognize Blockchain Stocks
California to become the next U.S. state that permits companies to store information – including data about stockholders on a blockchain.
Senator Robert Hertzberg first presented Bill 838 in January, but public filings reveal that the measure has picked up steam in recent days. The State Senate’s Banking and Financial Institutions Committee suggested the steps to the Judiciary Committee on 18 April after advancing it with a “do pass” recommendation.
The latest version of the bill would allow, “records administered by or on behalf of the corporation in which 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, and all issuances and transfers of stock of the corporation to be recorded and kept on or using blockchain technology or one or more distributed electronic networks.”
If passed by that committee, the full Senate will vote on the measure, which would legally admit information about a company’s stock, including ownership, stored on a blockchain.
In an announcement, Robert Hertzberg stated that the bill is a part of a move to help his state keep up with evolving financial technology, clarifying:
“The world around us is changing, and government must adapt to these swiftly evolving times. California needs to continue our legacy of taking on new and developing technologies, particular ones like blockchain, which is being embraced worldwide and presents a strong level of security that is resistant to hacking.”
Should California allow the measure – a result that far from assured -, the state would join Wyoming and Delaware in enabling companies to use the tech for administrative purposes.
California’s recommended law includes many stipulations, stating that the data must be capable of being “converted into clearly legible paper within a reasonable period,” and that the records can be utilized to store data stock certificates already contain.
As per the Legislation, the information would have to be “recorded and kept on or using blockchain technology or one or more distributed electronic networks.”