‘Unworkable’ bill to ban blockchain immutability is introduced in Illinois

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to the laws of Illinois — to order a blockchain transaction that is executed via a smart contract to be altered or rescinded.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.

While acknowledging the need to implement bills that strengthen consumer protection, Hinkes said it would be “impossible” for miners and validators to comply with the bill proposed by Senator Peters.

SB1887 focuses on consumer protection (this is GOOD). But, the manner in which it seeks to protect consumers is to require #node operators ##miners & #validators to do impossible things, or things that create for themselves new criminal & civil liability at pain of fines/ fees /3

— Drew Hinkes (@propelforward) February 19, 2023

Hinkes was also shocked to see that “no defense” would be available to miners or validators that operated on a blockchain network that “has not adopted reasonable available procedures” to comply with the court orders.

The bill also appears to mandate “any person using a smart contract to deliver goods and services” to include code in the smart contract which can be used to comply with court orders.

“Any person using a smart…