The State of Colorado is considering a bipartisan bill which seeks to relieve cryptocurrencies of some securities laws, as per documents released by the Colorado Senate.
The bill titled the Colorado Digital Token Act is aiming to establish “limited exemptions from securities registration and securities broker-dealer and salesperson licensing requirements for persons dealing in digital tokens”.
The intention is to further Colorado as an attractive location for blockchain businesses and entrepreneurs. The bill describes the potential of blockchain as a means to create Web 3.0 platforms as well as applications, which are said to have advantages over present Web 2.0 models.
The bill goes on to write: “Companies that seek to utilize cryptoeconomic systems face regulatory uncertainty that the issuance, sale, and purchase of digital tokens that have a primarily consumptive purpose may be prohibited under this article 51.”
Article 51 pertains to the requirement for registration of securities as well as exemptions, stating that it is “unlawful” to sell or offer the sale of any security in the state unless registered under Article 51, or falls under the exemption of four nuanced sections of the article.
Toward the end of 2018, the Colorado Securities Division brought the hammer down on four initial coin offerings (ICOs) for failing to comply with the present securities laws. The proposed Digital Token Act could see such events become a thing of the past.
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