Share this article
Colorado Senators File Bill to Exempt Cryptos from Securities Laws
Two Colorado lawmakers have introduced a new bill seeking to exempt some digital tokens from securities laws.
Updated Sep 13, 2021, 8:44 a.m. Published Jan 7, 2019, 10:15 a.m.
Make us preferred on Google
Two lawmakers from the U.S. state of Colorado have introduced legislation seeking to exempt cryptocurrencies and certain digital tokens from securities laws.
On Friday, senators Stephen Fenberg (Democrat) and Jack Tate (Republican) jointly filed a bill dubbed the “Colorado Digital Token Act,” proposing that digital tokens with a "primarily consumptive” purpose should be exempted from securities laws provided they are not marketed for “speculative or investment” purposes.
STORY CONTINUES BELOW
Don't miss another story.Subscribe to the Crypto Daybook Americas Newsletter today. See all newsletters
The move is aimed to remove "regulatory uncertainty" that could hold back firms offering marketplaces for tokens and others aiming to fundraise using crypto assets.
Creating the Colorado Digital Token Act "will enable colorado businesses that use cryptoeconomic systems to obtain growth capital to help grow and expand their businesses, thereby promoting the formation and growth of local companies and the accompanying job creation and helping make colorado a hub for companies that are building new forms of decentralized "Web 3.0" platforms and applications," the proposed bill states.
The consumptive purpose of digital tokens is defined as "to provide or receive goods, services, or content, including access to goods, services, or content," according to the document.
To qualify for exemption, the consumptive purpose for a token must be available within 180 days of its sale or transfer and the initial buyer cannot resell or transfer the token until the consumptive purpose is available.
Further, the bill specifies: “The initial buyer provides a knowing and clear acknowledgment that the initial buyer is purchasing the digital token with the primary intent to use the digital token for a consumptive purpose and not for a speculative or investment purpose.”
For an exemption, an issuer must file a notice of intent with the state's securities commissioner, the bill adds.
In a similar development last month, two members of the U.S. House of Representatives filed the “Token Taxonomy Act,” a proposal also seeking to exclude digital tokens from being defined as securities.
Colorado Capitol image via Shutterstock
More For You
Pudgy Penguins is building a multi-vertical consumer IP platform — combining phygital products, games, NFTs and PENGU to monetize culture at scale.
What to know:
Pudgy Penguins is emerging as one of the strongest NFT-native brands of this cycle, shifting from speculative “digital luxury goods” into a multi-vertical consumer IP platform. Its strategy is to acquire users through mainstream channels first; toys, retail partnerships and viral media, then onboard them into Web3 through games, NFTs and the PENGU token.
The ecosystem now spans phygital products (> $13M retail sales and >1M units sold), games and experiences (Pudgy Party surpassed 500k downloads in two weeks), and a widely distributed token (airdropped to 6M+ wallets). While the market is currently pricing Pudgy at a premium relative to traditional IP peers, sustained success depends on execution across retail expansion, gaming adoption and deeper token utility.
Más para ti
Bitcoin pulls back to as low as $81,000 as horrendous day continues
The world's largest cryptocurrency has shed nearly $10,000 over the past 24 hours, now threatening to take out its recent November low just under $81,000.
Lo que debes saber:
- Bitcoin (BTC) continued to quickly decline in the U.S. evening hours on Thursday, the price falling all the way to $81,000.
- More than $777 million in leveraged crypto long positions were liquidated in the space of one hour.
- Comments from President Trump caused a surge in Polymarket betting odds on Kevin Warsh becoming the next Fed chair, perhaps disappointing some traders who hoped the more dovish Rick Rieder would be selected.
Top Stories
