Legislators often don’t see eye-to-eye with new technology. Their first instinct is to either outlaw it or make it very difficult for service providers to gain traction. The State of Delaware is taking an entirely different route, though. The Assembly passed a bill which legalizing blockchain-based stock trades. As a result, blockchain technology is now in a prime position to disrupt US stock exchanges. A major victory for technology enthusiasts, that much is evident.
For the longest time, US stock markets have been using the same technology. In this era of modern technology, disruption is quickly becoming the buzzword. It is evident stock markets can benefit from blockchain technology.Now that the Delaware Assembly passed a law legalizing blockchain-based stock trades, things will get very interesting. More specifically, it is possible traditional stock markets will be rendered obsolete in a few years from now, unless they make the necessary upgrades.
Delaware Takes a big Step toward Blockchain-based Stocks
Although details of this new law are still hard to come by, things are looking quite good. Sources close to the matter told NewsBTC how the bill passed nearly unanimously. The official signing of this new bill will occur at the end of July. Additionally, the law will go into effect on August 1st, 2017. This new regulation will pave the way for issuing stocks on a blockchain or blockchain-based trading platform.
Right now, the only things being issued on a blockchain are currencies, tokens, or digital assets. Bringing stocks into the fold will create some new and exciting opportunities. Trading stocks on a blockchain remove the need for intermediaries altogether. That does not bode well for established stock exchanges and brokers, that much is evident. Furthermore, using this technology will result in faster settlement times, which is beneficial to everyone
The bigger question is how this law will play out in the long run. It will certainly bring a lot of attention to Delaware. Blockchain companies will be quite pleased with this new bill coming to pass. Many people thought blockchain-based trading systems would never come to market. All of those naysayers will be proven wrong soon. Disrupting traditional finance will happen, and blockchain technology will be the catalyst. The future’s looking bright for this industry, that much is evident.