A recent Illinois Senate Bill has been criticized by the cryptocurrency industry for its “unworkable ideas,” such as requiring blockchain miners and validators to undo transactions if forced to do so by a state court.
Robert Peters, a senator from Illinois, sneakily introduced the Senate Bill on February 9. Once a tweet about the bill was posted on February 19 by a Florida attorney named Drew Hinkes, word of this piece of legislation swiftly circulated through the community. If the attorney general or state attorney asks it, a court may change or invalidate a blockchain transaction executed through a smart contract under the Digital Property Protection and Law Enforcement Act.
Illinois Senate Bill Ridiculed
Every blockchain network that handles a blockchain transaction originated in Illinois would be subject to the statute. Notable examples here would be the Bitcoin and Ethereum networks.
When it comes to blockchain technology and digital currencies, Hinkes says this measure is the most unrealistic piece of state legislation he is ever seen. Anyone that mine or validate on a blockchain and does not comply with court orders might face fines of $5,000 to $10,000 per day under this legislation. Hinkes agreed with the necessity for more legal protections for consumers. Yet, he was disappointed that blockchain networks that employed insufficient compliance mechanisms would still face consequences, including those directed at miners and validators.
This Illinois Senate Bill would require any business using smart contracts to fulfill customer requests to include executable code that complies with legal standards.
Illinois Senate Bill is considering a measure that would make it possible for courts to reverse a blockchain transaction and refund the funds to the victim or original sender in cases of fraud or accidental mistakes. To further protect users from the risk of losing money, it aims to assist users in recovering their assets if they lose their private keys.