Colorado Votes Down Blockchain Bill For Identifying Tokens as Securities
Colorado has been in the news during the last days due to the different blockchain bills discussed in the public arena. This time, the HB 1426 wanted to create guidelines for identifying ‘open blockchain tokens’ as securities. Finally, it was voted down at the Senate in Colorado on Wednesday May the 9th.
Colorado HB 1426 Senate Bill Voted Down
According to The Denver Post, Senator Tim Neville, R-Littleton, co-sponsored the bill and said that he hoped that it would encourage blockchain innovation to move forward in the state.
The U.S. government is now discussing whether ICOs and other important cryptocurrencies like Ethereum or Ripple should be considered as securities or not.
“We usually come together to create more opportunities for Colorado companies and startups,” commented Neville once the bill was rejected. “In this case, this was an epic fail for those who chose not to support it.”
As the newspaper reports, the final hours of the session became dramatic. The vote split both political parties and the Senate voted to give the measure final approval by a single vote. Unexpectedly, moments later, lawmakers took another vote and shot it down 17-18.
The intention of the bill was to offer guidelines to distinguish between tokens and securities. In this differentiation, there are tokens that have an utility and others that should be considered as securities when they are created to obtain financial gains.
David Gold, a venture capitalist said:
“This is an opportunity for Colorado to say, ‘Look, we’re going to provide an environment that provides clarity for the sector. That doesn’t mean charlatans can violate security laws.’ Those who oppose it simply don’t understand it.”
The Colorado Senate passed another bill on May the 7th that recommends using blockchain technology and cryptography to the government and its different agencies. The main idea is to protect confidential state records from criminals or unauthorized manipulation or theft.