Colorado Passes Crypto Exemptions Bill Into Law
Jared S. Polis, the governor of the State of Colorado has signed the “Colorado Digital Token Act” into law.
It was initially proposed in January and sponsored at the state Senate level by Republican Jack Tate and Democrat Steve Fenberg. The act provides limited exemptions for securities registration and traders and even as a salesperson licensing requirements for persons dealing in digital tokens.
The bill identifies a “digital token” as “a digital unit with specified characteristics, secured through a decentralized ledger or database, exchangeable for goods or services, and capable of being traded or transferred between persons without an intermediary or custodian of value.”
A bill that would govern blockchain tokens was voted out in the Colorado state Senate last May. The bill defined an “open blockchain token” and exempted certain open blockchain tokens from being defined as a security. Venture capitalist and blockchain investor David Gold 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.”