The State of Colorado submitted a new bill on crypto regulation Friday, which if passed, will make digital currencies exempt from certain state securities laws. State lawmakers say they are seeking to accommodate local “cryptoeconomic” businesses after the Securities Commissioner filed against 20 initial coin offerings last year, in line with existing local laws.
In its current format, The Colorado Digital Token Act means:
- those dealing tokens in Colorado will not be bound by securities registration requirements.
- new tokens will need to qualify “under the Colorado safe harbor law”, or revert to regular securities law, bitcoin.com reported.
- crypto companies with “consumptive purposes” (defined as offering services or goods) will face more lenient regulation.
The bill, backed by three senators, is the local government’s second attempt in the past 12 months to pass a crypto exemption law. The last proposal narrowly failed in April after lawmakers reportedly switched votes last minute. Governor John Hickenlooper later established the Council for the Advance of Blockchain Technology to advise on an appropriate legal framework.
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The Colorado Digital Token Act: What you need to know written by Isabel Woodford @ https://www.theblockcrypto.com/tiny/the-colorado-digital-token-act-what-you-need-to-know/ January 7, 2019 Isabel Woodford