Colorado exempts cryptocurrencies from securities law
Pro-Bitcoin Colorado government signs a cryptocurrency-friendly bill. In November Jared Polis became the governor of Colorado. Jared Polis is known for being pro-cryptocurrency and blockchain - which is now having an impact of the US state of Colorado.
In March 2019, Jared Polis signed Colorado's Digital Token Act which will come into effect in August 2019. The act is part of Colorado's movement to establish itself as a “hub for companies and entrepreneurs that seek to utilize crypto economic systems to power blockchain technology-based business models.”
The law has been described as setting “limited exemptions from the securities registration and securities broker-dealer and salesperson licensing requirements for persons dealing in digital tokens.”
If “the primary purpose of the digital token is a consumptive purpose”, then the Digital Token Act specifies that cryptocurrencies will be exempt from state security laws. The consumptive purpose in terms of this act refers to means to provide or receive goods, services, or content, including access to goods, services, or content. Only cryptocurrencies that are used for speculative or investment purposes will be subject to the securities regulations of the State of Colorado.
The Digital Token Act will assist in the growth of companies related to cryptocurrency and blockchain and will make the application for blockchain technology a lot easier. Having digital assets subjected to security laws means that it would be under stricter regulations, therefore, the act has lightened the load in terms of regulations considerably.
Polis has highlighted the benefits of blockchain and stated that it will allow people to secure their data without having to rely on the government or big businesses.
The act states that "Blockchain technology has the potential to create new forms of decentralized “Web 3.0” platforms and applications that have advantages over the current centralized internet platforms and applications…Crowdfunding consumer goods platforms provide a means for companies and entrepreneurs to acquire growth capital and customers by pre-selling the right to receive consumer goods before the goods are ready to be sold or used, in addition to providing a marketplace for the purchase and sale of consumer goods that are ready for use."
The crypto community is standing behind Colorado's governor every step of the way as he takes the first step into the future.