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The Colorado Senate is considering exempting Cryptocurrencies from securities laws through its “Colorado Digital Token Act” which is still under consideration.
The bill is a bipartisan effort sponsored at the Senate level by Republican Jack Tate and Democrat Steve Fenberg. The move comes after the state’s commissioner took harsh actions against 20 ICOs.
According to the document of the proposal released on January 4th:
“The bill provides limited exemptions from the securities registration and securities broker-dealer and salesperson licensing requirements for persons dealing in digital tokens.”
The bill defines 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 bill further explains that Colorado businesses face regulatory uncertainties under the current states’ securities laws, it notes that “the costs and complexities of state securities registration can outweigh the benefits to Colorado businesses.”
The new act aims to enable businesses that use Cryptoeconomic systems to obtain the growth capital and help them grow and operate.
Sen. Jack Tate told the Colorado Sun:
“What is different with having the programmatic approach is that it’s a narrow, nascent technology versus dealing with an established industry like alcohol. All the big players (from the alcohol industry) were there, and it was more like a showdown at Gucci Gulch, Here, (blockchain) is a nascent technology dealing with a framework meant for other things. How do we update the regulatory framework now that we know there’s innovation out there? We don’t want to stifle innovation.”
The Senate previously had changed their minds on the approval of the “Virtual Currency Exemption Money Transmitters Act.” which was an attempt at Crypto regulations.
In other news: Cryptocurrency Enthusiastic American Congressman Pushes for ICO Legitimacy, Ohio to Accept Bitcoin for Tax Payments, Calls it Secure and Transparent, Wyoming Succeeding in Blockchain Adoption, Passes Blockchain Friendly Bill with 13-1 Majority.
Image Source (Modified): Unsplash
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