A new bill has been introduced in Colorado by two legislators proposing the exemption of digital currencies and particular tokens from existing securities laws.
Dubbed the “Colorado Digital Token Act,” the new bill filed on Friday by senator Stephen Fenberg and Jack Tate proposes the exclusion from securities laws of digital assets primarily used for consumptive purposes under the condition that they are not promoted for “speculative or investment” purposes.
The bill was developed in an effort to eliminate any “regulatory uncertainty” that may prevent companies from providing marketplaces for crypto startups seeking to raise funds through digital token offerings.
Furthermore, the new legislation also seeks to “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.”
As outlined in the proposed bill, digital tokens created for consumptive purposes are utilized “to provide or receive goods, services, or content, including access to goods, services, or content.”
To be eligible for the exemption, tokens offered for consumptive purposes must be available within 180 days following its sale or transfer and may not be resold until the consumptive purpose is available.
As the document further explained:
“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.”
Furthermore, a token issuer is required to file a notice of intent before the U.S. securities commissioner in order to qualify for the exemption.
Similarly, another bill dubbed the “Token Taxonomy Act” was previously filed last month by two members of the U.S. House of Representatives, which aims to exempt digital tokens from being classified as securities.