A number of cryptocurrencies will no longer be subject to securities regulation in the Colorado State under the new Digita Token Act signed by State's Governor last Friday. This move will enable the companies in the fintech space to operate without certain licensing requirements.
The approved law is based on the draft bill SB19-023 that was lodged in January as a way to eliminate the regulatory uncertainties in the crypto market. Specifically, the new act will rule that tokens that are used to transfer values via blockchain will neither be classified as securities nor regulated by any laws applied to other financial instruments.
According to the document, cryptos that "primarily have a consumptive purpose" can be sold, purchased or transferred and may not be restrained by Article 51 of Colorado Laws.
"Colorado has become a hub for companies and entrepreneurs that seek to utilize crypto economic systems to power blockchain technology-based business models...the primary purpose of the digital token is a consumptive purpose," reads the act.
At the same time, the state authorities noted that digital assets should not be used for speculations or investment activities.
Colorado authorities believe that this Act will help the state to become the technological hub for decentralized trading platforms. Moreover, this move is expected to soften blockchain and crypto business conditions, leading to more jobs and luring an increasing number of venture funds and other segment experts.
The new Act will become valid on August 2.
It should be also mentioned that Texas authorities are reportedly considering a ban on anonymous cryptos within the state.