Digital currencies to be exempt from securities law in Colorado as their Governor, Jared Polis, has signed a new bill. The bill was first introduced in January, described as provided “limited exemptions from the securities registration and securities broker-dealer and salesperson licensing requirements for persons dealing in digital tokens.”
The new law, known as the Digital Token Act, will make the application of blockchain technology and growth of related companies in the crypto industry a lot easier. This is down the fact that digital assets are not subject laws that would otherwise encumber from with stricter regulation.
The entrepreneur and Colorado’s CIO, Theresa Szczurek tweeted:
Exciting day for #blockchain technology. @GovofCO @jaredpolis signed the #Digital Token Act today with key legislators, Attorney General @pweiser, and #Colorado cabinet members Patty Salazar with @DORAColorado, @BetsyMarkey with OEDIT, and @TheresaSzczurek of @OITColorado. pic.twitter.com/erOEloEdpy
Digital assets are considered to be for “consumptive purposes”, this will mean that they won’t face prohibition if they meet all of the criteria. For those that don’t know, “consumptive purposes” is defined as a “means to provide or receive goods, services, or content, including access to goods, services, or content.”
Polis noted that the decentralised benefits of the technology “blockchain provides a way to secure our data without relying upon big business or big government.” In addition to this, the act makes statements on the potential of blockchain technology to bring in entrepreneurs as well as better tech systems.
“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.”
This act is going to come into effect on 2nd August. In the past year, the amount of states that have been open to blockchain is on the rise, including New Hampshire and Wyoming.
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