Colorado governor signs law to exempt certain cryptos from securities laws

Colorado Governor Jared Polis signed the Digital Token Act this Thursday. This law exempts certain cryptocurrencies from securities laws and allows entrepreneurs in Colorado to operate outside of strict securities registration requirements.

Theresa M. Szczurek, State of Colorado Chief Information Officer and Executive Director of the Office of Information Technology, tweeted about the historic bill signing:

“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.”

The bill reads:

“The bill provides limited exemptions from the securities registration and securities broker-dealer and salesperson licensing requirements for persons dealing in digital tokens. ‘Digital token’ is defined as a digital unit with specified characteristics, secured through a decentralized ledger or database, exchangeable for goods or services and capable of being traded or transferred between persons without an intermediary or custodian of value.”