'Unworkable' bill to ban blockchain immutability is introduced in Illinois

'Unworkable' bill to ban blockchain immutability is introduced in Illinois

Feb 19. 2023

By Brayden Lindrea

Florida-based lawyer Drew Hinkes described the bill as “the most unworkable state law” related to blockchain and cryptocurrency that he has ever seen.

A recently introduced Illinois Senate Bill has been ridiculed by the crypto community over its "unworkable" plans to force blockchain miners and validators to do "impossible things" — such as reversing transactions if ordered to do so by a state court.

The Senate Bill was quietly introduced into the Illinois legislature on Feb. 9 by Illinois Senator Robert Peters but appears to have been only recently noticed by Florida-based lawyer Drew Hinkes who discussed the bill in a Twitter post on Feb. 19.

The bill titled the “Digital Property Protection and Law Enforcement Act,” would authorize the courts — upon a valid request from the Attorney General or a State's Attorney that is made pursuant to the laws of Illinois — to order a blockchain transaction that is executed via a smart contract to be altered or rescinded.

The act would apply to any "blockchain network that processes a blockchain transaction originating in the State."

Hinkes described the bill as “the most unworkable state law” related to blockchain and cryptocurrency that he has ever seen.

"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’ve ever seen," he said.

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.