US State of Colorado Approves Crypto Exemptions Bill into Law

By Shannon Wilson | March 13, 2019
US State of Colorado Approves Crypto Exemptions Bill into Law

According to a document on March 6. The governor of the State of Colorado, Jared S. Polis has signed the “Colorado Digital Token Act” into law.

Referring to the act in which was originally planned in January and sponsored at the state Senate level by Republican Jack Tate and Democrat Steve Fenberg — salesperson licensing requirements for people dealing in digital tokens and arranged limited exemptions for securities registration and traders.

A former bill that would govern blockchain tokens was voted down in the Colorado state Senate last May. The bill defined an “open blockchain token” and exempted certain open blockchain tokens from being defined as security. Some of the members of the private sector were discouraged  with the result, wherein 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.”

The bill determines 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.

The Crypto Sight reported in February that two blockchain-related bills had been passed in the U.S.state of Wyoming. Both bills — one pertaining to the tokenization of assets and the other relating to depositories serving blockchain businesses — were introduced in January this year and will come into effect later in 2019.