The U.S. state of Colorado has introduced the “Colorado Digital Token Act” which provides some “exemptions from the state securities laws for cryptocurrencies,” according to the text of the bill. Meanwhile, the state’s securities commissioner has already taken action against 20 initial coin offerings.
Also read: Indian Supreme Court Moves Crypto Hearing, Community Calls for Positive Regulations
Lawmakers in Colorado introduced the “Colorado Digital Token Act” on Friday which, among other proposals, exempts cryptocurrencies from certain securities laws. According to the filing:
The bill provides limited exemptions from the securities registration and securities broker-dealer and salesperson licensing requirements for persons dealing in digital tokens.
The Colorado Sun publication elaborated, “If a token doesn’t qualify under the Colorado safe harbor” law, it will need to be “analyzed under typical securities law, or what is known as the Howey Test.”
In June, Gov. John Hickenlooper created the Council for the Advance of Blockchain Technology. The group is tasked with providing recommendations for “a comprehensive legal framework to support blockchain technology that considers potential applications and boundaries of the technology and protections for consumers,” the state announced at the time. Shapeshift CEO Erik Voorhees was among the blockchain industry leaders appointed for the council.
What do you think of Colorado’s digital token bill? Let us know in the comments section below.
Images courtesy of Shutterstock and the state of Colorado.
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The post Colorado Introduces Bill With Securities Law Exemptions for Cryptocurrencies appeared first on Bitcoin News.
Source: NewsBtc
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