Illinois Introduces a Bill to Ban Immutability in Blockchains

Illinois Senator's Blockchain Bill to "Help" Protect Digital Property

Illinois Senator Robert Peters quietly introduced the Senate Bill into the Illinois legislature on February 9.

The bill, which is called the "Digital Property Protection and Law Enforcement Act," would give the courts the authority to change or cancel a blockchain transaction that is done through a smart contract if the attorney general or state's attorney makes a valid request that is made in accordance with Illinois law.

For each day that they fail to comply with court orders, blockchain miners and validators face a fine of $5,000 to $10,000, according to the bill.

Miners, Validators in Blockchain Not Able to Comply With Court Orders

Florida-based lawyer Drew Hinkes stated that miners and validators would be unable to comply with the bill proposed by Senator Peters, despite the fact that he acknowledged the need to implement bills that enhance consumer protection.

Hinkes was also shocked to learn that miners and validators on a blockchain network that "has not adopted reasonable available procedures" to comply with the court orders would have "no defence." Additionally, it appears that "any person using a smart contract to deliver goods and services" must include code that can be used to comply with court orders in the smart contract.

On February 19, Southern Methodist University School of Law assistant professor Carla Reyes tweeted that legislators should only introduce bills if they understand how technology works.

According to the bill, two of the most common scenarios in which Illinois courts may order a blockchain transaction to the victim or original sender are fraud and error. Additionally, the goal of the bill is to assist users in locating their assets after losing their private keys.

Even though it was only introduced on February 9, the bill still needs to be "read" and approved by three different committee hearings before it can be sent to Illinois Governor Jay Pritzker for him to sign into law.