In its latest move to become a true digital state, Colorado is pushing a bill to explore how security tokens can be used for fundraising.
Colorado Senate Bill 25 recently passed two House committees. If passed, it would approve research into security tokens as a potential way to raise state capital.
The bill’s journey began in the Senate in February and was passed in March. It is now in the House of Representatives, and two committees have revised it. It was revised and advanced by the House Appropriations Committee on May 5, according to available records.
“Requires the Secretary of State Treasuries to study the feasibility of using security token products for state capital financing and to determine the extent to which it is in the best interest of the state to use security token products for state capital financing,” the bill states.
Under the Act, a “security token” is defined as a verifiable and secure digital, liquid contract enabled by blockchain technology that establishes its holder’s interest in a portion of a financial asset such as a stock, bond or certificate of participation right.
The bill also sets research costs at $389,285 and legal costs at $49,285. Given the state’s stance on cryptocurrencies, the bill is likely to pass.
Colorado Accepts Crypto Taxes
In February, Colorado Governor Jared Polis announced that the state would accept cryptocurrencies for taxation. He then said it was the next logical step on the road to a digital nation.
It’s worth noting that Colorado isn’t the only state with crypto-related moves. The governor of California recently signed an executive order requiring some government agencies to study cryptocurrencies so they can create a comprehensive framework. Others, such as Fairfax County, Virginia, plan to invest some of their pension funds in cryptocurrencies.
All of this points to a growing government embrace of cryptocurrencies, and with President Biden’s expected executive order this year, much-needed regulatory clarity will help increase cryptocurrency adoption.
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