Charles Hoskinson, the founder of Cardano, drew attention to an Illinois Senate bill known as the Digital Property Protection and Law Enforcement Act, highlighting its distinctiveness.
Additionally, the proposed legislation would allow courts to approve legitimate petitions from the attorney general or a state’s attorney. These petitions would allow for the modification or nullification of blockchain transactions through a smart contract. This legislation could have significant implications for regulating blockchain technology in the legal context.
The State’s Digital Property Protection and Law Enforcement Act covers digital transactions and the implementation of smart contracts. Its provisions address safeguarding digital property and contract rights, security interests, and service of process.
Bill proposes fines of $5-10k for blockchain miners and validators not complying with court orders.
Additionally, the bill requires individuals who utilize smart contracts to provide goods and services to integrate code within the smart contract that enables compliance with court orders.
Every individual utilizing a smart contract in this State to deliver goods or services must include a smart contract code that may enforce court decisions on the smart contract.
Someone introduced the measure for “the most unworkable state legislation” on February 9, but it only gained public attention after ten days. Drew Hinkes, a Florida attorney and founder of Cardano, brought it up in a tweet. The measure has since sparked concerns about its potential impact on the crypto industry.
Hoskinson said these proposals would force crypto companies worldwide to blocklist the United States.
The Cardano founder responded, “The FTX crash,” to a user who inquired what may have precipitated the regulatory reaction.
Hoskinson recently addressed some of the “misrepresentations” of contingent staking on Twitter.
Introduction: Cardano Founder and Staking Model
On Feb 10, during a webcast, the founder of Cardano presented a staking model that could adhere to legal regulations. It is crucial to acknowledge the importance of this advancement.
Contingent Staking” needs signatures from both the pool operator and delegator to complete the transaction for staking.
Hoskinson proposes using contingent staking to simplify regulatory compliance for pool operators by letting them choose who to delegate. However, this mechanism could increase transparency and accountability in the staking process.
Related Reading | Binance Report Reveals Surprising Insights Into Ethereum Staking
The Cardano CEO’s comments were made amid increased regulatory enforcement, as the US Securities Exchange Commission (SEC) and Kraken, a cryptocurrency exchange, have come to an understanding regarding the exchange’s staking activities. As a result of this agreement, Kraken’s staking services will be temporarily halted in the US.
This article conveys general information and the opinions expressed should not be considered personal advice for any individual or specific security or investment product.
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