Blockchain trading made legal
The State of Delaware just passed legislation making blockchain shares legal
On July 1, 2017, the State of Delaware passed amendments to state law to give explicit rights to trade stocks on a blockchain. This was just one of a large number of amendments that legally recognize any number of records stored on a blockchain. Delaware remains at the forefront of corporate law enabling the use of distributed ledger shares. This distributed ledger potentially makes middlemen obsolete and accelerates the process of making transactions and settlements.
It is no wonder that Delaware has spear-headed the legal and mainstream breakthrough of blockchain technology in the business and financial sector. Over one million US companies are incorporated in the State of Delaware. Over 50% of publicly traded US companies and 60% of Fortune 500 companies are based in Delaware. With a population of 941,600 (in Oct 2015), that means there are more businesses than residents.
Just for your information: Delaware is a tax haven among US states. Delaware’s tax system offers businesses significant tax cuts, including not even having to pay a corporate income tax in the state if they are paying in another state. In addition, the 1792 established Court of Chancery allows businesses to deal directly with a judge on legal cases. No jury means quicker decisions based on over 200 years of legal precedence. Ultimately, the state requires little paperwork to incorporate a business, which enables privacy and even anonymity (which means significantly less liability) for business owners.
The avant-garde patterns of business development in the history of Delaware indicate that blockchain technology has crossed a threshold of hope in the US. The likes of Google, Bank of America, and Coca-Cola are registered in Delaware. The success of these businesses is in great part due to the freedoms and benefits they enjoy from business-friendly legislation in this state. And now that blockchain can enjoy this amiable legislation, we can expect speedy developments. We will experience in the next months before the end of 2017 how much the legal introduction of blockchain will begin to revolutionize the way trading is done, contracts are made, and settlements are met.