The Colorado Digital Token Act’ bill has been passed into law by the state of Colorado. According to a 6th of March published document, the bill was signed into law by the state’s governor Jared S. Polis.
Colorado Passes Crypto Exemptions Bill
The bill had been initially presented, in the beginning of the year, to the floor of the state Senate by Jack Tate, a Republican, and Steve Fenberg, a Democrat. The bill proposes limited exemptions to be applied to traders and for securities registration. The bill also provides for exemptions with regards to licensing requirements for persons involved in digital tokens.
The bill defines digital tokens as a digital unit that has unique characteristics and has been secured using a database or ledger that is decentralised. The bill goes on to state that the digital unit is able to be exchanged for goods or services and can be transferred from one person to the next without the need of a value intermediary or custodian.
The exemptions provided by the law apply to tokens that are to be used for consumptive purposes only i.e. content, services or goods. In order for a token to qualify for this exemption, the token’s consumptive purpose has to be available in one hundred and eighty days after its sale or transfer. Additionally, the initial buyer of the token cannot transfer or resell the token until its consumptive purpose has been made available.
The bill tasks the proponents of a digital token with the responsibility of care to its consumers by disclosing the nature of the token.
Bill For Blockchain Based Water Rights Database Management System Proposed
Last year, in May, the Colorado State Senate voted down a bill that was seeking to govern Blockchain tokens. The bill defined what an Open Blockchain token is and was proposing the exemption of certain open Blockchain tokens from being classes as securities. The decision to shoot down the bill was received with much disappointment by players within the private sector.
David Gold, a Blockchain investor and Venture Capitalist, at the time stated that the bill was an opportunity for the state to play a part in the provision of an environment that establishes clarity within the sector. Gold added that by shooting down the bill the opposers within the Senate showed that they do not understand that this clarity would not mean charlatans could violate the security laws.
Senator Jack Tate, in collaboration with Jeni James Arndt and Marc Catlin, Democrat and Republican representatives respectively, filed a bill which looks into the management of a database of water rights. The bill puts the responsibility of studying ways in which Blockchain technology could be implemented in the management of water rights’ database on the Colorado Water Institute at Colorado State University.
Blockchain And Crypto Related Bills Passed
Last month, February, the state of Wyoming passed two Blockchain related bills. The bills which were proposed in January, one looking into the tokenization of assets and the other depositories for Blockchain based businesses, will be coming into effect later on in the year.