New Colorado Digital Token Act Bill Provides Securities Law Exemptions for Cryptocurrencies
In a landmark move, the U.S. state of Colorado has recently passed the “Colorado Digital Token Act” that is designed to provide cryptocurrencies with certain
“exemptions from existing state securities laws”.
With that being said, it is also worth pointing out that over the course of the past few months, Colorado’s securities commissioner has initiated criminal proceedings against 20 initial coin offerings — which were deemed to be illegal by the state’s economic regulatory body.
More About The Act
Earlier on Friday, the Colorado state senate introduced the “Colorado Digital Token Act” which exempts cryptocurrencies from being subject to certain securities laws.
As per the filing:
“The bill provides limited exemptions from the securities registration and securities broker-dealer and salesperson licensing requirements for persons dealing in digital tokens.”
Not only that, apart from providing digital token offerings with an all new definition, the bill also goes on to state the following:
“The costs and complexities that currently exist in relation to state securities registration can outweigh the benefits for businesses operating in the cryptocurrency space (in Colorado)”.
Last but not least, it is also worth pointing out that the new act has been devised to help businesses within the state of colorado that make use of crypto-economic systems to obtain ”growth capital” that will help them expand and prosper with much more ease.
A Brief Look At Colorado’s Previous Crypto Regulatory Attempts
As some of our regular readers may remember, early in 2018, lawmakers in Colorado had pushed to introduce a bill called the
“Virtual Currency Exemption Money Transmitters Act”.
Upon its tabling, the bill was passed into its “second review stage” by a single vote, however just a few weeks later, it appeared as though some lawmakers had changed their minds and thus scrapped their plans to pass the bill altogether.
Similarly, during June last year, Gov. John Hickenlooper created the Council for the Advance of Blockchain Technology, in an effort to establish a stable legal framework that would “support blockchain technology” and provide impetus to digital currency use within the state. In this regard, Shapeshift CEO Erik Voorhees, was one of the market experts to have been appointed to the above stated group.
As pointed out earlier, the Colorado Division of Securities has recently taken firm action against a total of 20 initial coin offerings (ICOs) that were found to be operating illegally within the state. It now remains to be seen how the future of crypto plays out within Colorado from here on end.