Delaware Assembly Passes "Historic" Law Legalizing Blockchain-Based Stock Trades

Tyler Durden's picture

The State of Delaware just took a historic step toward ensuring that US stock exchanges will soon be violently disrupted by blockchain technology - possibly to the extent of being rendered obsolete. CoinDesk reports that lawmakers in the state’s general assembly passed a law that makes explicit the right to trade stocks on a blockchain. Details of the bill are still emerging. One source indicated that the bill passed with near unanimity, with a single vote against. The vote was widely considered to be the final obstacle to state adoption, following the passage of the bill in the Senate earlier this month. The measure, which was added to another bill in the form of an amendment, is expected to be signed in to law by Delaware Gov. John Carney by the end of the month, with the ruling going into effect on Aug. 1.

Developed under the close guidance of blockchain lawyer Marco Santori of Cooley LLP and Caitlin Long of blockchain startup Symbiont, the bill is expected to pave the way for potentially large-scale issuance of stock on a blockchain. By trading stock on a blockchain or similar distributed ledgers, users can cut out middlemen like the exchanges and ATSs that profit by facilitating trades, resulting in significantly faster settlement times. The bill was introduced last year by the previous governor, Jack Markell, following requests made by multiple companies for the legislation – which was already lenient to blockchain stocks – to make explicit the legality of such issuances, according to CoinDesk's sources.

“This is big for Delaware,” Symbiont's Long told CoinDesk, further explaining the potential benefits of the amendments:”

Chair of the corporate law section of the Delaware bar association, Matthew O'Toole, told CoinDesk he expects the state's governor, John Carney, to sign the bill into law by the end of July, with an effective date of 1st August.

In an email to CoinDesk, O'Toole said the vote "keeps Delaware at the forefront of corporate law and in the lead in terms of enabling the use of 'distributed ledger shares'." He added: "We look forward to helping Delaware corporations enjoy the benefits of this innovative new amalgamation of law and technology."

Blockchain-based trading systems are inching closer to becoming a reality. Two years ago, Nasdaq OMX Group said it would use blockchain technology to power trading in shares of privately held companies on its Nasdaq Private Market platform. The company said at the time that private-share trading was particularly ripe for disruption because of the heavy volume of paperwork involved in recording and settling the transactions. Assuming Carney signs the bill, like CoinDesk expects, the measure should pave the way for US companies – many of which are legally based in the state – to begin listing shares on blockchain-based distributed ledgers. One source told CD that the bill "keeps Delaware at the forefront of corporate law and in the lead in terms of enabling the use of 'distributed ledger shares'."

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NoDebt's picture

If you're wondering "what's that big house in the picture?" it's Delaware's State House.  Yeah, it's that small.  But then again, so is Dover, Delaware's capitol city.  As is Delware itself.  

 

Pernicious Gold Phallusy's picture

Don't cry for Deleware. Arizona has the ugliest State Capitol.

Scrimpy's picture

Delaware is a terd infested liberal shithole, but they send me a nice monthly pension check, and I retired at 47....

BaBaBouy's picture

SO Number 1 Question is HOW do you Short a stock on the Blockchain...?

Do you ever have to cover???

weburke's picture

Bad news for many jobs.

Déjà view's picture

For '$talk' Market...

Btw...Capitol looks like a renovated H-J MOTOR INN...

playit's picture

I'm making over $7k a month working part time. I kept hearing other people tell me how much money they can make online so I decided to look into it. Well, it was all true and has totally changed my life. This is what I do,... www.jobproplan.com

shoWTHyme's picture

"Do you ever have to cover???"

No, you negative share covfefe.

Adrian Monk's picture

My question, is will it rid us of naked short sellers?

cherry picker's picture

Why not a 'historic' law that takes government tax collectors and regulators out of the mix.

Tired of all those politicians who couldn't hold down a real job regulating and stealing us blind.

tmosley's picture

It will happen. The vote will be on the blockchain.

Governments will be obsolete within five years. Crypto and AGI make this inevitable.

5000yl's picture

You better figure out how to get on this train if you are not. Blockchain will be how you make transactions soon

aurum4040's picture

Well other than the 4000% run since beginning of the year, I think we figured out why Ether crashed last week - crush the week hands, double up position, and let it fly. For those who said cryptos and specifically Ether is just another fiat with no instrinic value - does your feeble mind understand yet? And trading systems are just the tip of the iceberg .  Guess which crypto is going to benefit most out of this? Well, the one thats backed by JP Morgan, UBS, BNY and 217 other companies of course. Great day for Ether and blockchain enthusiasts. 

Crypto-World-Order's picture

Im the long gun for the long run on Ether. Bought some last nite at 255 and already up nicely. ETH will get the kinks worked out. ETH will be 1000 by EOY

DjangoCat's picture

Got mine to support the DAO, at 17.  That was a fiasco.  Yet, mistakes will be made.  The child will mature.

Arnold's picture

And 17 intelligence agency s.

Crash Overide's picture

Not many people let along the general population truly understand where the technology is going.

 

froze25's picture

They don't need or want to know how it works all they give a shit about is that it works. They definitely don't have the vision for it.

Sudden Debt's picture

Nop, it's the final nail in the coffin of bitcoins. Crypto's will be destroyed because of it.

ebworthen's picture

Have to agree with you there.

The idea is a nice one, but on an Internet controlled by the N.S.A.

What happens when we get levered Netflix and Teslas ETF's using crypto-ether-"coins"?

South Seas Company and Black Tulips.  Huge pot of Pension, Retiree, and Gambler cash out there.

Crypto-World-Order's picture

None of your bullshit predictions have come true. You are gartman of Cryptos. Stick to your day job assembling happy meals.

DjangoCat's picture

Run your tantrums all you like, your cries are fading out,  Can I hear you now?  can i hear yu now..  Sorry.

tmosley's picture

Hahaha, you remind me of the peak oil doomers, stroking their nectrotic doomboners in the face of a tidal wave of evidence that shows their position to be incorrect.

Fucking pathetic.

any_mouse's picture

AGI? American Gunsmithing Institute or Adjusted Gross Income?

And the existing governments will allow this to happen peacefully?

Remember, that if voting worked, it would be illegal.

Give us Stirling Engines's picture

He's right. Even if they do fight it blockchain tech can be used to automate entire systems eliminating the need for people in governments, matters of law, trade and finance. 

It is inevitable.

any_mouse's picture

You do not understand the nature of human systems of self preservation and the sociopaths that run the system.

Only Chaos and Collapse are inevitable in this Universe.

The Governments will not go peacefully. No law would ever be passed that removes Power from the Government and hands Rights and Power back to the People.

USA started with Rights of The People as foremost. The States were lower and had Rights. The Federal government only had a few Duties to The People and The States, no Rights were ascribed to the Federal level.

Complete Reversal of Sovereignty.

Happened slowly at first, then all at once.

tmosley's picture

You don't understand. Government is the dinosaur. Blockchain is the meteor. Artificial General Intelligence (AGI) is the second meteor because fuck you that's why.

When their money is worth nothing, no-one will bother to work for the government. Jackboots cost money. While they might be able to extract money from some people, the second meteor, AGI makes that money largely moot because an infinite workforce drives the cost of all goods and services to zero. When everyone has everything they could ever want, no-one wants to do their boring government job. Everyone just walks away.

https://www.youtube.com/watch?v=H0sUMe1Z8-0

DjangoCat's picture

So the AI man takes over, global, no arguments.  Can you just say No?  Gold and barter may be a bypass, but this thang is acomin.  

Full disclosure, I have small positions in both bitcoin and ethereum..

tmosley's picture

AI takes over locally, which leads to globally. Legitimately free stuff. Like having willing slaves that are far smarter than you in every way imaginable.

The future looks pretty damn comfy.

DjangoCat's picture

On the otherhand, the AI is, or should be, opensource.  Everyone can read and undertand the code.  No secrets, no false flags.  If you don't like one version, you can launch a better one.  All it takes is significant acceptance by the populace.  

Keep the powerful forces, banks, corporates, governments, out of the process.  Bitcoin is the pure, clean, first mover on this space.

gilhgvc's picture

if it was created by man, it can be corrupted by man

DjangoCat's picture

You are optimistic, but thats OK.  2 thumbs up.

Sudden Debt's picture

That already exists for a long time.... it's like you buy stocks from the blackrock fund.

You can buy for 1000 dollars for example and you get 0,8 stocks.

This is just a way to let people buy overinflated stocks so they can go even higher...

this has nothing to do with crypto's as most idiots here will think ;)

slightlyskeptical's picture

It is a way to truly track who owns what. Youcan even use to track who sold who which option and make individual settlement possible. 

Sudden Debt's picture

in the end, it's all to collect every penny in taxes they can find.

If that would ever happen in Wallstreet, all the brokers and traders are done with

Anteater's picture

What's  in your wallet?  Hey, where is my wallet! A-a-a-a-and it's gone!

RagaMuffin's picture

 

<<<<they do not understand the bill

<<<<they did not read the bill

 

grunk's picture

Any corporation law in Delaware is passed/not passed based on what the Delaware corporate lawyers tell the GA to do do.

 

 

Scrimpy's picture

The DEM dominated GA will pass any law to increase revenue to their slush fund. Delaware is one of the most corrupt states in America, and that is a feat in itself. The main "news"paper is a jew run propaganda outlet called the "News" Urinal. It's a Gannett Propaganda Publication, just like Joo Ess Aye Today.

aloha_snakbar's picture

Look out... here come the rabid, braindead Bitcoin groupies...

tmosley's picture

I'm sure we'll go to a gold standard any minute now.

Sudden Debt's picture

bitcoin has nothing to do with this.

 

maybe a bit... it shows that coindesk is working together with the authorities!!

And as EVERY BITCOIN owner didn't report their profits to the taxman... they should be scared shitless.

This deal that coindesk has made is a switch. If they would destroy bitcoin in America, they would lose their incomestream.

so...

they'll sell out the bitcoin owners and get a new biz in return.

 

aloha_snakbar's picture

Duh... no shit captain obvious...

Bunga Bunga's picture

Blockchain for fast settling within hours, but how do you pay with same speed?

DjangoCat's picture

You talkin to me muthafucca?

any_mouse's picture

The law was written with help of a blockchain lawyer and a blockchain startup.

The bill passed by reps who, for the most part, do not understand blockchain.