Delaware is one step closer to legally recognizing blockchain-based stocks.

Lawmakers in the state introduced a bill in May to make stock registries and other kinds of business records legal if they are held on a distributed ledger system or blockchain. The effort began last year as part of a bid to reduce the amount of paperwork required to form a business in Delaware, where many corporations are registered in the US.

Public records

show that the Senate cleared the bill on 6th June, with 20 votes in favor and one abstention. The vote came a day after the body's Elections & Government Affairs cleared it for passage.

With that, the legislation now moves to the Delaware House of Representatives, with the Judiciary Committee now having to consider the measure within 12 days.

To become law, both chambers of the legislature have to finalize the bill, and Governor Jack Carney will need to sign his approval. If finalized, the bill would go into effect on 1st August – though it could face delays if work isn't signed by 30th June due to the rules by which the Delaware General Assembly operates.

Delaware state capitol image via Shutterstock