Colorado State Signs a New Cryptocurrency Bill

Cryptocurrency wave is taking over the United States as evident from the increasing number of crypto businesses. State governments are also focussed on enhancing growth of the industry by providing robust regulation policies. Last week, the Governor of State of Colorado, Jared Polis, signed a new cryptocurrency bill dubbed Colorado Digital Token Act.

Colorado Digital Token Act

Before we proceed and look at details of Colorado Digital Token Act, it is important to note that Governor Jared is a huge fan of bitcoin and is rumoured to have already invested in several cryptocurrencies. The new bill states that all cryptocurrency salesperson, dealers, and brokers operating in the state of Colorado are exempted from state licensing needs.

Colorado State Signs a New Cryptocurrency Bill

Reports indicate that the bill was supposed to be recommended in January this year and some of the notable leaders who pushed for it are Steven Feinburg and Jack Tate. The two vowed to sponsor and ensure that the bill would be passed at state Senate level to make Colorado more receptive to the various cryptocurrencies.

The Colorado Digital Token Act, will be effective from 2rd August 2019. The news about the signing of the bill was released by Theresa Szczurek, the current Chief Information Officer of Colorado. In one of her tweets, Jared Polis photo was included and the caption read “Exciting day for blockchain technology”.This is not the first bill to be discussed by the State of Colorado. Another bill that proposed controls of blockchain token was brought to the house on May 2018 but unfortunately it was voted down by the legislators. That bill sort to introduce a new description of blockchain token and a few digital tokens would be exempted from taxes for being categorized as securities.

The proponents of the bill stated that the legislators decided to turn it down because they did not fully understand how it works.

Final Thoughts

Colorado Digital Token Act will make a change to the cryptocurrency industry in Colorado State. Experts are of the idea that the policy and regulations will make the country more receptive to cryptocurrencies. The bill will also encourage the national government to come up with new policies to enhance growth of the cryptocurrency industry.