With California being home to Silicon Valley, it is surprising that the state has been lagging behind in creating legislation to encourage blockchain technology. This changed however, on Monday August 27, when the bill AB2658, was passed by both houses. Both houses also approved of the respective amendments and the bill will now be on the desk of the governor for approval.
In an attempt to usurp California’s hold on being America’s tech hub, states such as Colorado, Delaware, Nevada, Ohio, Tennessee, and Wyoming have all passed legislation created to bring in and stimulate blockchain startups. The bills passed all have varying approaches in order to attract new business, such as prohibiting taxation of blockchains or amending the state’s electronic transfers law or corporate code.
California’s AB2658 which was submitted back in February of this year, cites:
“The Secretary of the Government Operations Agency shall appoint a blockchain working group and designate the chairperson of that group on or before July 1, 2019.”
The group would consist of 17 members, and are tasked with evaluating the uses of blockchain in state government and California-based businesses, the risks, including privacy risks, associated with the use of blockchain by state government and California-based businesses, as well as various legal and compliance issues pertaining to the sector.