The U.S. state of Colorado has passed the Colorado Digital Token Act, a law that will exempt some Cryptocurrencies from securities laws as part of a move to promote crypto use. The governor of the State of Colorado, Jared S. Polis has signed the bill into law, also will exempt Crypto broker-dealers and salesperson from state licensing requirements under limited circumstances.
The act, which was originally proposed in January and sponsored at the state Senate level by Republican Jack Tate and Democrat Steve Fenberg, provides some degree of exemptions for securities registration and traders, in addition to the salesperson from licensing requirements for persons dealing in digital tokens. The Digital Token Act takes effect on 2nd August of this year, is a part of a move lifting up the state into a tech hub for decentralized Web3.0 platforms by making it easier for entrepreneurs to initiate Blockchain and Crypto-based businesses. Moreover, lawmakers anticipated that the act will reinforce the economy of Colorado by producing new jobs and attracting venture capitalists, developers, and investors to the state. The bill signifies 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.
In May last year, an earlier bill defined an Open Blockchain Token, that would preside over Blockchain tokens was voted down in the Colorado state Senate. The bill exempted certain open Blockchain tokens from being defined as a security, however, some private sector members were disenchanted with the outcomes. Moreover, earlier this month, Senator Jack Tate (R), alongside representatives Jeni James Arndt (D) and Marc Catlin (R), filed a bill that tasks the Colorado Water Institute at Colorado State University with studying the potential deployment of Blockchain to manage a database of water rights.