Jared Polis who is the Governor of the State of Colorado has signed an act which is digital currency friendly known as ‘Colorado Digital Token Act.’ The self-proclaimed fan of Bitcoin has signed it on March 8th which from the state’s securities law has exempted digital currency under few terms and conditions.
All the cryptocurrency brokers, dealers and salesman who deal with digital tokens are exempted from the state licensing needs by the new law made under bounded circumstances. Under the act, the securities registration and people who trade are offered restricted exemptions. The bill was supposed to be recommended in January. With that, Jack Tate who is a Republican and a businessman and Steve Feinberg who is the Democrat State Senator from Colorado were going to sponsor it at the state Senate level.
This act will be effective from 2nd August 2019. A photo of Governor Jared Polis signing the Digital Token Act was tweeted by the chief information officer of Colorado, Theresa Szczurek and she captioned it as “Exciting day for blockchain technology.”
There was a bill passed in the past too that would control the blockchain token, but in May 2018 the state Senate of Colorado voted it down. An ‘open blockchain token’ was explained in the bill in which few open blockchain tokens were exempted from being determined as security. David Gold, blockchain investor and Venture capitalist said that this bill would give a chance to Colorado to say, “Look, we’re going to provide an environment that provides clarity for the sector. That doesn’t mean charlatans can violate security laws.” Further, he said that people are opposing it because they have no understanding about it. After listening to this it was stated by Gold that the private sector’s few members felt disappointed with the consequences.
The new act signed has given hopes for people as it will boost the economy of Colorado since many new jobs will be created as per the lawmakers. It will also attract the state’s investors, developers and venture capitalists.
As per the Digital Token Act, if the cryptocurrencies are the primary purpose of the digital token is a consumptive purpose, it is exempted from the state securities law. On the other hand, if the crypto tokens are utilized for a ‘speculative or investment purpose’ it is not exempted.
A bill was passed in March by Jack Tate the Senator along with Jeni James Arndt and Marc Catlin the representatives which ventured Colorado Water Institute at Colorado State University with learning about the possibly implementing blockchain technology to maintain the water rights database.