A new bill in Colorado Senate proposes to give cryptocurrencies limited exemptions from securities laws
A new bill is under consideration by the Colorado Senate to exempt cryptocurrencies form some security laws, as per the documents released on January 4.
The “Colorado Digital Token Act” plans to offer extra limited freedom to cryptocurrency and its traders and this bipartisan effort is sponsored at the Senate by Democrat Steve Fenberg and Republican Jack Tate.
The move comes amidst the crackdown of illegitimate offerings in the industry to formalize the local market by the local authorities.
A summary of the proposal reads, “The bill provides limited exemptions from the securities registration and securities broker-dealer and salesperson licensing requirements for persons dealing in digital tokens,” continuing, “‘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.”
An earlier effort towards regulating token identity, the move which would have clarified whether digital tokens falls under the category fo security tokens, was struck down in May last year by the Senate.
The lawmakers seem hopeful towards the potential of cryptocurrencies and blockchain technologies growing applications.
The bill agrees that the blockchain has potential to innovate “decentralized ‘Web 3.0’ platforms” along with applications that have “advantages over the current centralized internet platforms and applications.”
Emphasizing on Colorado the bill reads, “Colorado has become a hub for companies and entrepreneurs that seek to utilize crypto economic systems to power blockchain technology-based business models.”
The different states of the U.S. have a different outlook towards the cryptocurrency, for example, New York’s BitLicennsing continues to cause a backlash from the business across the industry.