Colorado New Act Will Exempt Crypto from Securities Laws
The U.S. state of Colorado has recently announced the introduction of a new crypto related Acts called the “Colorado Digital Token Act”. According to the state, the new act will provide cryptocurrencies with some exemptions from the state securities laws.
The scope of the New Bill
It was stated in the
The document continued that:
“Digital token’ is defined 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.”
This move by Colorado which is known to have some of the harshest cryptos related laws is a very surprising one. Currently, about 20 ICOs are under sanctions from the state’s securities commissioner.
Speaking on why the bill is necessary, one of the introducers of the bill, Sen. Jack Tate, stated that: “What is different with having the programmatic approach is that it’s a narrow, nascent technology versus dealing with an established industry like alcohol. All the big players (from the alcohol industry) were there, and it was more like a showdown at Gucci Gulch, ” He continued that: “Here, (blockchain)is a nascent technology dealing with a framework meant for other things. How do we update the regulatory framework now that we know there’s innovation out there? We don’t want to stifle innovation.”
A Similar Bill Was Rejected
A similar bill “Virtual Currency Exemption Money Transmitters Act” was introduced late last year in the state. The bill was turned down following a voting process. Speaking on why the new bill “Colorado Digital Token Act” was approved while the first one was turned down.
Eric Kintner, an attorney
“I was really heartened by how much good faith everybody put into the process and how the regulators were willing to meet us and express their concerns but, at the same time, find solutions. A lot of times in my experience in private practice, you’re dealing with a government telling you, ‘No, you can’t do that.’ But this was ‘We want to support you.’”