A document dated March 6 reveals that the Governor of U.S State Colorado, Jared S. Polis has signed into law the “Colorado Digital Token Act” which exempts cryptocurrencies from the same classification as traditional securities.
The act which was sponsored by Republican Jack Tate and Democrat Steve Feinberg and first submitted to the Colorado Senate in January introduces the following new features to the cryptocurrency ecosystem:
A different definition of “digital tokens” as opposed to Federal laws where the SEC says that nearly all tokens are non-compliant with securities laws.
The Act embraces a broad perspective by defining cryptocurrencies as “a digital unit ... that is exchangeable for goods or services, and capable of being traded or transferred between persons without an intermediary or custodian of value.”
It exempts the new asset class from “securities registration” and also removes “securities broker-dealer and salesperson licensing requirements” for persons dealing in them.
The passage of the bill should open the way for more blockchain and crypto startups to consider expansion in Colorado as the region plans to become the go-to U.S State for the burgeoning industry.
Meanwhile, the situation in Colorado highlights the benefits of having pro-blockchain officials occupying an important position in a State.
In November, we reported that the victory of Jared Polis and Gavin Newsom in Colorado and the California States respectively could bring new improvement to the crypto and blockchain set up in the region.
Rhode Island is another U.S State where Senators are currently leading a charge to liberate some crypto tokens from local securities law, but the chances of approval would likely be higher if there were pro-blockchain governance in place.
On a Federal level, the industry still awaits the decision of lawmakers on the Token Taxonomy Act, first introduced in December.
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