A new bill has been introduced in the Colorado Senate on Friday, Jan. 4th 2019, for Senates approval. The bill, which then becomes an act, will exempt cryptocurrencies from the purview of some state securities laws.
The “Colorado Digital Token Act,” a bipartisan effort by Republican Jack Tate and Democrat Steve Fenberg, aims to offer limited exemptions for cryptocurrencies and traders, from securities registration and licensing requirements. The introduction of the bill in the Colorado Senate, follows the crackdown of local securities regulators on illegitimate offerings in Nov. 2018, in an attempt to bring regulation in the crypto landscape within the region.
The proposal of the bill that is supposed to become an act reads that there will be provision for limited exemptions from the securities registration requirements and securities broker-dealer & salesperson licensing requirements for individuals or entities dealing in digital tokens. Further, the proposal defines ‘Digital token,’ as a digital unit with specified characteristics, secured through a decentralized ledger or database, which can be exchanged in return for goods or services, and traded or transferred between persons without an intermediary or custodian of value.
Earlier in May 2018, a blockchain bill was voted down by the Colorado state, the bill, if passed, would have clarified on the current securities scenario in the state, and provided some ground rules, but was struck down.
At around the same time, a light of hope emerged in the crypto and blockchain industries, with enlightened attitudes about the emerging tech, lawmakers became more hopeful.