North Carolina Senate unanimously passes encouraging adoption and study of blockchain technology and smart contracts! SB 470 now moves on to the NC House!

North Carolina senate has unanimously passed a bill creating an Innovation Council which would study Blockchain technology and smart contracts to "provide legal and regulatory clarification" and to "explore, receive input, analyze, and make recommendations, with respect to blockchain initiatives and the application of blockchain technology, that would additionally provide benefit to the State, its consumers, and its industry."

This is an interesting development in a state that is known for its FinTech hub (Charlotte) and its growing IT and biotechnology hubs (Research Triangle). From the law text (emphasis mine):

Legislative findings. (a) The General Assembly finds that the banking and insurance industry is a major economic driver for the State. The General Assembly also finds that FinTech, InsurTech, and other emerging technologies are undergoing a transformational period and providing greater automation, connectivity, transparency, and opportunity for related products and services.

The General Assembly recognizes that these new technologies hold the key for future growth across the State.

Further, the General Assembly finds that existing legal and regulatory frameworks are restricting innovation because these frameworks were established largely at a time when technology was not a fundamental component of industry ecosystems, including banking and insurance.

Since innovators require a flexible regulatory regimen to test new products, services, and emerging technologies, such as blockchain technology, the General Assembly also finds that adopting taxonomy related to blockchain, smart contracts, and other emerging technologies into State law would provide legal and regulatory clarification and create a more attractive jurisdiction for businesses and individuals who aim to do business in the State.

This is great news! It's also great to see the state actually encourage and work towards embracing new technologies, rather than try to stifle them to keep the old guard alive.