Cardano founder Charles Hoskinson raised attention toward a Senate bill in Illinois called the Digital Property Protection and Law Enforcement Act.
The bill sought to give the courts the power to authorize the alteration or revocation of a blockchain transaction carried out by a smart contract upon a legitimate request from the attorney general or a state’s attorney.
The Digital Property Protection and Law Enforcement Act in the state include digital transactions and the execution of smart contracts. It noted “provisions concerning the protection of digital property and contract rights, security interests, and service of process.”
According to the proposed legislation, any blockchain miners and validators that disregard court orders could face fines ranging from $5,000 to $10,000.
Further, the bill also appears to mandate “any person using a smart contract to deliver goods and services” to include code in the smart contract that can be used to comply with court orders.
Any 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.
The “most unworkable state legislation” bill, was introduced on February 9 but has only lately gained notice because Florida lawyer Drew Hinkes mentioned it in a tweet ten days later and now by the Cardano founder.
Hoskinson claimed that these proposals will compel the global crypto firms to blacklist the United States.
When one user asked what could have sparked the regulatory pushback, the Cardano founder replied “The FTX collapse.”
Recently, Hoskinson responded on Twitter to some of the “misrepresentations” surrounding the concept of contingent staking.
Cardano’s Charles Hoskinson Responds To Critics
It is worthwhile to note that the Cardano founder in a webcast on February 10 outlined a staking model that could comply with legal requirements.
Dubbed “Contingent Staking”, where the delegator and staking pool operator would both need to sign the transaction before it could be completed.
According to Hoskinson, contingent staking would provide pool operators the freedom to pick who they wish to delegate to, making it easier for them to meet legal requirements.
The remarks from the Cardano boss come amidst a regulatory crackdown when the US regulator, the Securities Exchange Commission [SEC], and crypto exchange Kraken have reached an agreement on the platform’s staking operations. The latter’s staking services in the U.S. will be suspended as part of the agreement.
