The U.S. state of Colorado has launched the “Colorado Digital Token Act” which offers some “exemptions from the state securities laws for cryptocurrencies,” in response to the textual content of the invoice. Meanwhile, the state’s securities commissioner has already taken motion in opposition to 20 preliminary coin choices.
Colorado Digital Token Act
Lawmakers in Colorado launched the “Colorado Digital Token Act” on Friday which, amongst different proposals, exempts cryptocurrencies from sure securities legal guidelines. According to the submitting:
The invoice offers restricted exemptions from the securities registration and securities broker-dealer and salesperson licensing necessities for individuals dealing in digital tokens.
Colorado companies “face regulatory uncertainty” below the state’s securities legal guidelines, the invoice explains. In addition to defining digital tokens, the invoice notes that “The costs and complexities of state securities registration can outweigh the benefits” for companies with “a primarily consumptive purpose” working within the cryptocurrency house in Colorado. According to the invoice, consumptive goal “means to provide or receive goods, services, or content, including access to goods, services, or content.”
The invoice additional asserts that this new act will allow companies within the state “that use cryptoeconomic systems to obtain growth capital to help [them] grow and expand.”
The Colorado Sun publication elaborated, “If a token doesn’t qualify under the Colorado safe harbor” regulation, it’ll should be “analyzed under typical securities law, or what is known as the Howey Test.”
Colorado’s Crypto Regulatory Attempts
In April final yr, lawmakers in Colorado launched a invoice entitled the “Virtual Currency Exemption Money Transmitters Act.” It was initially handed by a single vote however, in response to the information outlet, it later failed after some lawmakers modified their minds.
In June, Gov. John Hickenlooper created the Council for the Advance of Blockchain Technology. The group is tasked with offering suggestions for “a comprehensive legal framework to support blockchain technology that considers potential applications and boundaries of the technology and protections for consumers,” the state introduced on the time. Shapeshift CEO Erik Voorhees was among the many blockchain business leaders appointed for the council.
Meanwhile, the Colorado Division of Securities has been taking motion in opposition to preliminary coin choices (ICOs) allegedly working illegally within the state. The division introduced on Nov. 20 final yr that Securities Commissioner Gerald Rome had filed 20 circumstances in opposition to allegedly fraudulent ICOs. These orders resulted from investigations by the ICO Task Force, which is a part of the state’s Department of Regulatory Agencies (DORA).
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Images courtesy of Shutterstock and the state of Colorado.
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