Colorado legislators have introduced a draft bill which, if adopted, would exempt cryptocurrencies from current securities laws. ICO procedures are likely to be legalized as well.
Parliamentarians in Colorado came up with a draft bill on digital assets which could exempt cryptocurrencies from the local securities laws.
Meanwhile, local financial regulator has already taken action against 20 ICOs.
“The bill provides limited exemptions from the securities registration and securities broker-dealer and salesperson licensing requirements for persons dealing in digital tokens,” – a summary of the proposals reads.
Given the current local laws, businesses are inevitably facing “regulatory uncertainty”, the initiators of the draft bill believe.
Moreover, the initiative presupposes the introduction of ICO procedure aimed at attracting crypto investments to bolster local business ventures.
The draft bill introduces a set of requirements for tokens. Should a token fail to comply with these, it will then be subject to Howey Test.
Back in May 2018, Colorado authorities envisaged the possibility of political contributions in crypotcurrencies.
Early in November 2018, Gavin Newsom, an early Bitcoin adopter and advocate, was elected as a Governor of California. This was closely preceded by Jared Polis, another crypto-friendly congressman, winning the Colorado governor race. Polis has been vigorously advocating cryptocurrencies by publishing quotes on the prospective nature of the blockchain technology as applied to state management and administration.