The U.K. Law Commission reportedly claimed that it is not necessary for England and Wales to have statutory law reform for smart legal contracts across the crypto asset sphere.

Specifically, the US Law Commission – currently in charge of supervising the laws in the UK and suggesting reforms – reportedly believed that smart contracts developing via employing distributed ledger technology are legal to operate under England’s and Wales’ existing legal framework. 

The Law Commission reportedly suggested that only “an incremental development of the common law” as needed for the currently adopted frameworks, but issued further encouragement for parties towards smart contracts, as the explanation for risks associated with “the performance of the code” and any other required terms.

The commission report stated that the conclusions were made from the ones tapped into by the U.K. Jurisdiction Taskforce, which classifies smart contracts as enforceable agreements under local regulations, apart from granting the definition of tradeable property for crypto assets.

Nonetheless, the group further revealed that it has a target of collaborating with the U.K. government on an initiative, deep-diving into any possible conflicts of laws related to emerging technology in 2022.

“The Law Commission’s analysis demonstrates the flexibility of the common law to accommodate technological developments, particularly in the context of smart legal contracts. It confirms that the jurisdiction of England and Wales provides an ideal platform for business and innovation.”

Taking into account the rapidly spreading impact of smart legal contracts in the current market scene, the Commission reportedly anticipates that  the market will come up with “practices and model clauses that parties can use to simplify the process of negotiating and drafting their smart legal contracts.”