Regulation update: Cryptocurrencies now exempted from Securities Laws in Colorado
|- Digital assets are being exempted from stricter regulation in Colorado.
- The signed bill will take effect on August 2, 2019.
The cryptocurrency space is celebrating a step in the right direction after the Governor of Colorado Jared Polis signed a bill that exempts cryptocurrencies from securities laws. The bill was introduced in January 2019 and was described as one that provides “limited exemptions from the securities registration and securities broker-dealer and salesperson licensing requirements for persons dealing in digital tokens.”
This means that players in the cryptocurrency industry will have it easy when coming up with blockchain related technology because cryptos are not under securities laws. In other words, digital assets are being exempted from stricter regulation.
The assets are now regarded to exist for “consumptive purposes” and are not subject to prohibition as long as they meet the criteria. According to Polis:
“Blockchain provides a way to secure our data without relying upon big business or big government.”
In addition to that that the act states:
“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.”
The signed bill will take effect on August 2. The state of Colorado is joining the likes of New Hampshire and Wyoming which have been very crypto progressive.
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