Washington State, USA Signs New Act, Recognizing the Application of Blockchain in Commercial and Digital Signatures

On April 26, Governor of Washington State, Jay Inslee, signed the SB 5638 Act, which recognizes the validity of distributed ledger technology, encourages the development of blockchains, recognizes its use in commercial and digital signatures, and modifies Legislation to provide a definition of the technology. The original purpose of the Washington Electronic Authentication Act is to encourage the use of "reliable electronic information" in state business activities and to ensure that "electronic signatures are not denied and legally recognized." The bill encourages companies to use technology to streamline business processes, rather than using outdated business requirements (such as using paper signatures) to drive down business growth.