According to a document released by the Colorado government on the 6th of march, it is inadvertently clear that Jared S. Polis, State governor has signed into law, the "Colorado Digital Token Act".
In January of this year, the act was first proposed and sponsored at the state senate level by Jack Tate and Steve Fenberg of the Republican and Democrat respectively and it establishes limited exemptions for securities registration and traders, as well as sales person licencing requirements for those dealings in Digital tokens.
According to the bill, a digital token is "any 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.”
Last year in the month of May, a similar bill that favors Blockchain Tokens was unanimously voted down particularly because the bill made a deliberate effort to narrow the definition of Securities excluding a few other open Blockchain tokens. This attracted some form of negative feel in the market leading to reactions form players in the private sectors.
People like Venture Capitalist and Blockchain Investor David Gold said:
“This is an opportunity for Colorado to say, ‘Look, we’re going to provide an environment that provides clarity for the sector. That doesn’t mean charlatans can violate security laws.’ Those who oppose it simply don’t understand it.”
Earlier this month, Senator Jack Tate (R), together with representatives Jeni James Arndt (D) and Marc Catlin (R), filed a bill that tasks the Colorado Water Institute at Colorado State University with studying the potential implementation of blockchain to manage a database of water rights.