Shocking new bill in Illinois threatens to cripple blockchain technology – Cryptopolitan
Illinois lawmakers have introduced a new bill that could potentially spell doom for blockchain technology in the state. The Digital Property Protection and Law Enforcement Act, or SB1887, was proposed with the aim of addressing digital property crime, the loss of private keys and fluctuations in the prices of digital assets.
However, it has been met with concern by blockchain and cryptocurrency advocates who fear the bill could set a dangerous precedent and stifle innovation in the industry.
The bill and the intent of the bill
In Illinois, residents who hold cryptocurrencies, non-fungible tokens (NFTs) and other forms of digital property held on blockchains are the target of legislation that was introduced with the intention of protecting them.
The bill says digital property owners are particularly vulnerable to harm from fraud, hacks, phishing scams and extortion, as well as loss of cryptographic private keys and erroneous transactions.
It also mentions the fact that crimes committed using blockchain technology have become common and often result in hundreds of millions of dollars in losses, and that Illinois residents have suffered and continue to suffer unnecessary losses as a direct consequence of these causes.
The main objective of this legislation is to encourage the development of technologies that secure blockchain transactions and legal rights to digital property. This will provide an opportunity for economic growth for companies located in the state of Illinois.
The bill would enable the attorney general or a state attorney to issue a legitimate request for any acceptable blockchain transaction involving digital property or for the execution of a smart contract. This would be made possible by the law being passed.
A court can then mandate any such transaction, and a blockchain network processing a transaction originating in the state is required to conduct a court-ordered blockchain transaction without a claim for the private key associated with the digital property or smart contract.
Concerns for the Blockchain Industry
The blockchain industry has voiced fears that the measure could potentially destroy the technology, particularly with the clause that blockchain networks must perform court-ordered transactions without the need for a private key.
As a result of this clause, blockchain networks may be subject to government interference and censorship.
Additionally, the provision that blockchain operators are liable for a civil fine of between $5,000 and $10,000 for each day the blockchain network fails to comply with the order is of concern to blockchain operators as it could potentially bankrupt their business.
Another concern is that the proposed legislation would require any person using a smart contract to provide goods or services in the state of Illinois to include a smart contract code capable of enforcing court judgments related to the smart contract.
Since this rule involves the inclusion of an additional layer of code to guarantee compliance with court orders, it may create an undue burden on firms and individuals using blockchain technology.
