{"id":554131,"date":"2023-02-20T08:36:05","date_gmt":"2023-02-20T05:36:05","guid":{"rendered":"https:\/\/en.buradabiliyorum.com\/unworkable-bill-to-ban-blockchain-immutability-is-introduced-in-illinois\/"},"modified":"2023-02-20T08:36:05","modified_gmt":"2023-02-20T05:36:05","slug":"unworkable-bill-to-ban-blockchain-immutability-is-introduced-in-illinois","status":"publish","type":"post","link":"https:\/\/buradabiliyorum.com\/en\/unworkable-bill-to-ban-blockchain-immutability-is-introduced-in-illinois\/","title":{"rendered":"# &#8216;Unworkable&#8217; bill to ban blockchain immutability is introduced in Illinois"},"content":{"rendered":"<div id=\"ez-toc-container\" class=\"ez-toc-v2_0_84 counter-hierarchy ez-toc-counter ez-toc-custom ez-toc-container-direction\">\n<p class=\"ez-toc-title\" style=\"cursor:inherit\">Table of Contents<\/p>\n<label for=\"ez-toc-cssicon-toggle-item-6a23d6d41a226\" class=\"ez-toc-cssicon-toggle-label\"><span class=\"\"><span class=\"eztoc-hide\" style=\"display:none;\">Toggle<\/span><span class=\"ez-toc-icon-toggle-span\"><svg style=\"fill: #dd3333;color:#dd3333\" xmlns=\"http:\/\/www.w3.org\/2000\/svg\" class=\"list-377408\" width=\"20px\" height=\"20px\" viewBox=\"0 0 24 24\" fill=\"none\"><path d=\"M6 6H4v2h2V6zm14 0H8v2h12V6zM4 11h2v2H4v-2zm16 0H8v2h12v-2zM4 16h2v2H4v-2zm16 0H8v2h12v-2z\" fill=\"currentColor\"><\/path><\/svg><svg style=\"fill: #dd3333;color:#dd3333\" class=\"arrow-unsorted-368013\" xmlns=\"http:\/\/www.w3.org\/2000\/svg\" width=\"10px\" height=\"10px\" viewBox=\"0 0 24 24\" version=\"1.2\" baseProfile=\"tiny\"><path d=\"M18.2 9.3l-6.2-6.3-6.2 6.3c-.2.2-.3.4-.3.7s.1.5.3.7c.2.2.4.3.7.3h11c.3 0 .5-.1.7-.3.2-.2.3-.5.3-.7s-.1-.5-.3-.7zM5.8 14.7l6.2 6.3 6.2-6.3c.2-.2.3-.5.3-.7s-.1-.5-.3-.7c-.2-.2-.4-.3-.7-.3h-11c-.3 0-.5.1-.7.3-.2.2-.3.5-.3.7s.1.5.3.7z\"\/><\/svg><\/span><\/span><\/label><input type=\"checkbox\"  id=\"ez-toc-cssicon-toggle-item-6a23d6d41a226\" checked aria-label=\"Toggle\" \/><nav><ul class='ez-toc-list ez-toc-list-level-1 ' ><li class='ez-toc-page-1 ez-toc-heading-level-1'><a class=\"ez-toc-link ez-toc-heading-1\" href=\"https:\/\/buradabiliyorum.com\/en\/unworkable-bill-to-ban-blockchain-immutability-is-introduced-in-illinois\/#%E2%80%9D_%E2%80%98Unworkable_bill_to_ban_blockchain_immutability_is_introduced_in_Illinois_%E2%80%9C\" >&#8221; &#8216;Unworkable&#8217; bill to ban blockchain immutability is introduced in Illinois &#8220;<\/a><\/li><\/ul><\/nav><\/div>\n<h1><span class=\"ez-toc-section\" id=\"%E2%80%9D_%E2%80%98Unworkable_bill_to_ban_blockchain_immutability_is_introduced_in_Illinois_%E2%80%9C\"><\/span>&#8221; &#8216;Unworkable&#8217; bill to ban blockchain immutability is introduced in Illinois &#8220;<span class=\"ez-toc-section-end\"><\/span><\/h1>\n<div class=\"post-content\" data-v-48054ca8>A recently introduced Illinois Senate Bill has been ridiculed by the crypto community over its &#8220;unworkable&#8221; plans to force blockchain miners and validators to do &#8220;impossible things&#8221; \u2014 such as reversing transactions if ordered to do so by a state court.<\/p>\n<p>The Senate Bill was quietly <a rel=\"nofollow noopener\" target=\"_blank\" href=\"https:\/\/www.ilga.gov\/legislation\/fulltext.asp?DocName=&amp;SessionId=112&amp;GA=103&amp;DocTypeId=SB&amp;DocNum=1887&amp;GAID=17&amp;LegID=146730&amp;SpecSess=&amp;Session=\">introduced<\/a> into the Illinois legislature on Feb. 9 by Illinois Senator Robert Peters but <a href=\"https:\/\/buradabiliyorum.com\/en\/category\/download-scripts-themes-apps\/\" data-internallinksmanager029f6b8e52c=\"9\" title=\"Download Scripts &amp; Themes &amp; Apps\" target=\"_blank\" rel=\"noopener\">app<\/a>ears to have been only recently <a rel=\"nofollow noopener\" target=\"_blank\" href=\"https:\/\/twitter.com\/propelforward\/status\/1627359077209702400?s=20\">noticed<\/a> by Florida-based lawyer Drew Hinkes who discussed the bill in a <a href=\"https:\/\/buradabiliyorum.com\/en\/category\/social-mediaa\/\" data-internallinksmanager029f6b8e52c=\"1\" title=\"Social Media\" target=\"_blank\" rel=\"noopener\">Twitter<\/a> post on Feb. 19.<\/p>\n<p>The bill titled the \u201cDigital Property Protection and Law Enforcement Act,\u201d would authorize the courts \u2014 upon a valid request from the Attorney <a href=\"https:\/\/buradabiliyorum.com\/en\/category\/general\/\" data-internallinksmanager029f6b8e52c=\"3\" title=\"General\" target=\"_blank\" rel=\"noopener\">General<\/a> or a State&#8217;s Attorney that is made pursuant to the laws of Illinois \u2014 to order a blockchain transaction that is executed via a smart contract to be altered or rescinded.<\/p>\n<p>The act would apply to any &#8220;blockchain network that processes a blockchain transaction originating in the State.&#8221;<\/p>\n<figure><img decoding=\"async\" src=\"https:\/\/s3.cointelegraph.com\/uploads\/2023-02\/b31699a5-f699-4f49-9091-7e21a6981fed.jpg\"><figcaption style=\"text-align: center;\"><em>Senator Robert Peter\u2019s bill to ban immutability on blockchains. Source: <\/em><a rel=\"nofollow noopener\" target=\"_blank\" href=\"https:\/\/www.ilga.gov\/legislation\/fulltext.asp?DocName=&amp;SessionId=112&amp;GA=103&amp;DocTypeId=SB&amp;DocNum=1887&amp;GAID=17&amp;LegID=146730&amp;SpecSess=&amp;Session=\"><em>Illinois General Assembly.<\/em><\/a><\/figcaption><\/figure>\n<p>Hinkes described the bill as \u201cthe most unworkable state law\u201d related to blockchain and cryptocurrency that he has ever seen. <\/p>\n<p>&#8220;This is a stunning reverse course for a state that was previously pro -innovation. Instead we now get possibly the most unworkable state law related to #crypto and #blockchain I\u2019ve ever seen,&#8221; he said.<\/p>\n<p>The bill states that any blockchain miners and validators may be fined between $5,000-10,000 for each day that they fail to comply with court orders.<\/p>\n<p>While acknowledging the need to implement bills that strengthen consumer protection, Hinkes said it would be \u201cimpossible\u201d for miners and validators to comply with the bill proposed by Senator Peters.<\/p>\n<blockquote class=\"twitter-tweet\">\n<p lang=\"en\" dir=\"ltr\">SB1887 focuses on consumer protection (this is GOOD). But, the manner in which it seeks to protect consumers is to require <a rel=\"nofollow noopener\" target=\"_blank\" href=\"https:\/\/twitter.com\/hashtag\/node?src=hash&amp;ref_src=twsrc%5Etfw\">#node<\/a> operators #<a rel=\"nofollow noopener\" target=\"_blank\" href=\"https:\/\/twitter.com\/hashtag\/miners?src=hash&amp;ref_src=twsrc%5Etfw\">#miners<\/a> &amp; <a rel=\"nofollow noopener\" target=\"_blank\" href=\"https:\/\/twitter.com\/hashtag\/validators?src=hash&amp;ref_src=twsrc%5Etfw\">#validators<\/a> to do impossible things, or things that create for themselves new criminal &amp; civil liability at pain of fines\/ fees \/3<\/p>\n<p>\u2014 Drew Hinkes (@propelforward) <a rel=\"nofollow noopener\" target=\"_blank\" href=\"https:\/\/twitter.com\/propelforward\/status\/1627359990150225925?ref_src=twsrc%5Etfw\">February 19, 2023<\/a><\/p><\/blockquote>\n<p><script async src=\"https:\/\/platform.twitter.com\/widgets.js\" charset=\"utf-8\"><\/script><\/p>\n<p>Hinkes was also shocked to see that \u201cno defense\u201d would be available to miners or validators that operated on a blockchain network that \u201chas not adopted reasonable available procedures\u201d to comply with the court orders. <\/p>\n<p>The bill also appears to mandate &#8220;any person using a smart contract to deliver goods and services&#8221; to include code in the smart contract which can be used to comply with court orders.<\/p>\n<blockquote><p>\u201cAny person using a smart contract to deliver goods or services in this State shall include smart contract code capable of enforcing court orders regarding the smart contract.\u201d<\/p><\/blockquote>\n<blockquote class=\"twitter-tweet\">\n<p lang=\"en\" dir=\"ltr\">If you thought that was bad. Get ready to <a rel=\"nofollow noopener\" target=\"_blank\" href=\"https:\/\/twitter.com\/hashtag\/Illinoize?src=hash&amp;ref_src=twsrc%5Etfw\">#Illinoize<\/a> your blockchain! Yes, <a rel=\"nofollow noopener\" target=\"_blank\" href=\"https:\/\/twitter.com\/hashtag\/Illinois?src=hash&amp;ref_src=twsrc%5Etfw\">#Illinois<\/a> is going to force you to re-write your blockchain- specifically by including smart contract code capable of responding to court orders. And if you don\u2019t, you can be sued \/10<\/p>\n<p>\u2014 Drew Hinkes (@propelforward) <a rel=\"nofollow noopener\" target=\"_blank\" href=\"https:\/\/twitter.com\/propelforward\/status\/1627362135129968641?ref_src=twsrc%5Etfw\">February 19, 2023<\/a><\/p><\/blockquote>\n<p><script async src=\"https:\/\/platform.twitter.com\/widgets.js\" charset=\"utf-8\"><\/script><\/p>\n<p>Other members of the cryptocurrency community have responded with similar ridicule of the bill proposed by Peters.<\/p>\n<p>Crypto analyst \u201cfoobar\u201d noted to his 120,800 Twitter followers on Feb. 19 that court ordered transactions would need to \u2014 somehow \u2014 be amended \u201cwithout needing the private key\u201d of the participants, which he considered to be \u201chilarious.\u201d<\/p>\n<blockquote class=\"twitter-tweet\">\n<p lang=\"en\" dir=\"ltr\">this is hilarious, Illinois is proposing a bill that would make miners &amp; validators \u201crespond to a court order by including transactions on the blockchain without needing the private key\u201d<\/p>\n<p>why are you refusing to comply, transfer satoshi\u2019s bitcoin to governor pritzker! off to jail <a rel=\"nofollow noopener\" target=\"_blank\" href=\"https:\/\/t.co\/7JcpktWMgH\">https:\/\/t.co\/7JcpktWMgH<\/a> <a rel=\"nofollow noopener\" target=\"_blank\" href=\"https:\/\/t.co\/FPKLsFNE3e\">pic.twitter.com\/FPKLsFNE3e<\/a><\/p>\n<p>\u2014 foobar (@0xfoobar) <a rel=\"nofollow noopener\" target=\"_blank\" href=\"https:\/\/twitter.com\/0xfoobar\/status\/1627446585582919681?ref_src=twsrc%5Etfw\">February 19, 2023<\/a><\/p><\/blockquote>\n<p><script async src=\"https:\/\/platform.twitter.com\/widgets.js\" charset=\"utf-8\"><\/script><\/p>\n<p>Gabriel Shapiro, lawyer and general counsel at investment firm Delphi Labs explained very briefly to his 34,100 Twitter followers on Feb. 19 that the bill would essentially try to ban immutability on blockchains:<\/p>\n<blockquote class=\"twitter-tweet\">\n<p lang=\"en\" dir=\"ltr\">TLDR&#8211;they are trying to ban immutability <a rel=\"nofollow noopener\" target=\"_blank\" href=\"https:\/\/t.co\/HSg00pcFHx\">https:\/\/t.co\/HSg00pcFHx<\/a><\/p>\n<p>\u2014 _gabrielShapir0 (@lex_node) <a rel=\"nofollow noopener\" target=\"_blank\" href=\"https:\/\/twitter.com\/lex_node\/status\/1627435786801913859?ref_src=twsrc%5Etfw\">February 19, 2023<\/a><\/p><\/blockquote>\n<p><script async src=\"https:\/\/platform.twitter.com\/widgets.js\" charset=\"utf-8\"><\/script><\/p>\n<p>Meanwhile, Carla Reyes, assistant professor at Southern Methodist University School of Law in a Feb. 19 tweet, <a rel=\"nofollow noopener\" target=\"_blank\" href=\"https:\/\/twitter.com\/Prof_CarlaReyes\/status\/1627319094478360576\">stated<\/a>\u00a0that lawmakers should only introduce bills if they understand how the <a href=\"https:\/\/buradabiliyorum.com\/en\/category\/technology\/\" data-internallinksmanager029f6b8e52c=\"4\" title=\"Technology\" target=\"_blank\" rel=\"noopener\">technology<\/a> works.<\/p>\n<p>While immutability is a common property in blockchains and distributed ledgers, the Peters-sponsored bill explained that such networks lack an enforcement mechanism that can be tapped into by the courts:<\/p>\n<blockquote><p>\u201cAs a result, the cost to enforce legal rights in digital property is often prohibitive such that the property rights cannot be vindicated and the vast majority of blockchain crimes go unpunished.\u201d<\/p><\/blockquote>\n<p>Fraud and mistake would be two of the most commonly used cases where Illinois courts may order for a blockchain transaction to the victim or original sender, the bill noted. <\/p>\n<p>The bill also wants to help users recover their assets if they lose their private keys.<\/p>\n<p><strong><em>Related: <\/em><\/strong><strong><em>What is blockchain technology? How does it work?<\/em><\/strong><strong><em> <\/em><\/strong><\/p>\n<p>While the bill was only introduced on Feb. 9, it will need to be &#8220;read&#8221; and voted in by three separate committee hearings before being passed on to Illinois Governor Jay Pritzker to officially sign the bill into law.<\/p>\n<p>The first reading took place on the same day it was introduced into the Illinois General Assembly by Peters.<\/p>\n<p>If it is ever passed, the contents of the bill would take effect 30 days after becoming law.<\/p>\n<p><template data-name=\"subscription_form\" data-type=\"law_decoded\"><\/template><\/div>\n<blockquote><p><strong><span style=\"color: #ff6600;\">If you liked the article, do not forget to share it with your friends. Follow us on\u00a0<span style=\"color: #ff0000;\"><a style=\"color: #ff0000;\" href=\"https:\/\/news.google.com\/publications\/CAAqBwgKMLG0nwswvr63Aw\" target=\"_blank\" rel=\"nofollow noopener noreferrer\">Google News<\/a><\/span>\u00a0too, click on the star and choose us from your favorites.<\/span><\/strong><\/p><\/blockquote>\n<blockquote>\n<p style=\"text-align: center;\">For forums sites go to <span style=\"color: #ff9900;\"><a style=\"color: #ff9900;\" href=\"https:\/\/forum.buradabiliyorum.com\/\" target=\"_blank\" rel=\"noopener\">Forum.BuradaBiliyorum.Com<\/a><\/span><\/strong>\n<\/p><\/blockquote>\n<blockquote>\n<p style=\"text-align: center;\"><strong>If you want to read more <a href=\"https:\/\/buradabiliyorum.com\/en\/category\/news\/\" data-internallinksmanager029f6b8e52c=\"2\" title=\"News\" target=\"_blank\" rel=\"noopener\">News<\/a> articles, you can visit our <span style=\"color: #ff9900;\"><a style=\"color: #ff9900;\" href=\"https:\/\/en.buradabiliyorum.com\/general\/\" target=\"_blank\" rel=\"noopener\">General category.<\/a><\/span><\/strong><\/p>\n<\/blockquote>\n<p><span style=\"color: black;\"><a style=\"color: #ff9900;\" href=\"https:\/\/cointelegraph.com\/news\/unworkable-bill-to-ban-blockchain-immutability-is-introduced-in-illinois\" target=\"_blank\" rel=\"noopener\">Source<\/a><\/span><\/p>\n","protected":false},"excerpt":{"rendered":"<p>&#8221; &#8216;Unworkable&#8217; bill to ban blockchain immutability is introduced in Illinois &#8220; A recently introduced Illinois Senate Bill has been ridiculed by the crypto community over its &#8220;unworkable&#8221; plans to force blockchain miners and validators to do &#8220;impossible things&#8221; \u2014 such as reversing transactions if ordered to do so by a state court. The Senate&#8230;<\/p>\n","protected":false},"author":1,"featured_media":554132,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"fifu_image_url":"https:\/\/s3.cointelegraph.com\/uploads\/2023-02\/c5940813-ba57-4897-bdf3-15ee79fbabf5.jpg","fifu_image_alt":"","footnotes":""},"categories":[1],"tags":[74894,75042,76216,80098,75434,74880,75269,135119,70934,70289],"class_list":["post-554131","post","type-post","status-publish","format-standard","has-post-thumbnail","hentry","category-general","tag-blockchain","tag-mining","tag-nodes","tag-private-keys","tag-smart-contracts","tag-transactions","tag-us-government","tag-validator","tag-regulation","tag-senate"],"_links":{"self":[{"href":"https:\/\/buradabiliyorum.com\/en\/wp-json\/wp\/v2\/posts\/554131","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/buradabiliyorum.com\/en\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/buradabiliyorum.com\/en\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/buradabiliyorum.com\/en\/wp-json\/wp\/v2\/users\/1"}],"replies":[{"embeddable":true,"href":"https:\/\/buradabiliyorum.com\/en\/wp-json\/wp\/v2\/comments?post=554131"}],"version-history":[{"count":0,"href":"https:\/\/buradabiliyorum.com\/en\/wp-json\/wp\/v2\/posts\/554131\/revisions"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/buradabiliyorum.com\/en\/wp-json\/wp\/v2\/media\/554132"}],"wp:attachment":[{"href":"https:\/\/buradabiliyorum.com\/en\/wp-json\/wp\/v2\/media?parent=554131"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/buradabiliyorum.com\/en\/wp-json\/wp\/v2\/categories?post=554131"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/buradabiliyorum.com\/en\/wp-json\/wp\/v2\/tags?post=554131"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}