Colorado senators Stephen Fenberg and Jack Tate have filed a bipartisan bill, titled the “Colorado Digital Token Act,” that would attempt to exempt digital tokens from securities laws.
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.
Saying that Colorado “has become a hub for companies and entrepreneurs that seek to utilize cryptoeconomic systems to power blockchain technology-based business models,” the bill would effectively give tokens with a “primarily consumptive purpose,” i.e. utility tokens, such as Basic Attention Token (BAT), fewer hoops to jump…