In Colorado, cryptocurrencies can be excluded from securities law

A bill has been submitted to the Senate of the State of Colorado, suggesting the release of cryptocurrencies and certain digital tokens from regulation within the framework of securities laws, reports Cointelegraph .

The authors of the bill, which was published on January 4, were Republican Jack Tate and Democrat Steve Fenberg.

As stated in the explanation of the document, the Colorado Digital Tokens Act offers a limited exemption from registration of securities and removes the requirement to obtain a license for brokers, dealers and other persons involved in the sale of digital tokens.

“A digital token is defined as a digital unit with certain characteristics, protected by a decentralized registry or database, exchanged for goods or services and traded or transferred between users without the participation of intermediaries or custodians of values,” the bill says.

A previous attempt to enact laws that would regulate the circulation of cryptocurrencies and digital tokens in Colorado was rejected by the State Senate in May.

Nevertheless, the authors of the draft law retain the hope that the general attitude towards cryptocurrencies and blockchain technology will become softer.

“The blockchain technology has the potential to create new forms of decentralized platforms and Web 3.0 applications that have advantages over current centralized platforms and applications,” the document says.

Its authors also stress that Colorado has already established itself as a place attracting companies and entrepreneurs seeking to use cryptoeconomic models for business models based on blockchain technology.

Recall that in January 2018, Jack Tate and Steve Fenberg were among the authors of the Colorado State Bill, which proposed the use of blockchain technology to protect personal data.

In addition, the recently elected Colorado Governor Jared Polis , during his Congressional Blockchain Caucus membership in the US House of Representatives, actively urged the country to take the lead in regulating cryptocurrency space. He also previously proposed to oblige congressmen to declare digital currencies.

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