The state of Tennessee has made history, being the first state that recognized in a bill the legitimacy of blockchain technology and transactions, and the first one to acknowledge the existence of smart contracts. This happened yesterday when a bipartisan bill was approved by unanimity by the state senate.
The said bill, SB1662, introduced by Senator Steven Dickerson (Republican) has made strides at a state level due to the innovative and controversial subject that it touches. The bill recognizes blockchain technology and defines it. It states:
Blockchain technology means distributed ledger technology that uses a distributed, decentralized, shared, and replicated ledger, which may be public or private, permissioned or permissionless, or driven by tokenized crypto economics or tokenless. The data on the ledger is protected with cryptography, is immutable and auditable, and provides an uncensored truth
The other interesting aspect of the said bill is the mention of smart contracts and its uses.
Smart contract means an event-driven program, that runs on a distributed, decentralized, shared, and replicated ledger and that can take custody over and instruct transfer of assets on that ledger.
Having seen al this, it seems that state-level regulation is beating federal level one, at least in issues regarding cryptocurrencies and blockchain subjects. Hopefully, this will help Tennessee to bring more and more crypto enthusiasts to make business there; this would actually motivate other states to do the same thing.
Sadly, this bill only concerns the state of Tennessee. In the United States, federal level is always higher than the state one; so this can be interpreted as a symbolic fact, to make other states and the country aware of the necessity of clear regulation and recognition of these issues. Exchanges and traders are expectant to which kind of regulation will be passed regarding cryptocurrencies and ICOs at a higher level.