In its latest move towards becoming a true digital state, Colorado is pushing a bill that aims to explore how security tokens can be used for fundraising.
The Colorado Senate Bill 25 has recently passed two committees in the House of Representatives. If passed, it’ll approve the study of security tokens as a potential way to raise state capital.
The Bill’s journey started in the Senate Chamber in February and was passed in March. It’s now in the House of Representatives, where two committees have amended it. According to available records, the House Appropriations Committee amended and advanced it on May 5.
“Requires the state treasurer to study the feasibility of using security token offerings for state capital financing and determine the extent to which the use of security token offerings of state capital financing would be in the best interest of the state,” the bill states.
Under the bill, a “security token” is defined as a digital, liquid contract made verifiable and secure through blockchain technology that establishes its holder’s right to a fraction of a financial asset such as a stock, bond, or certificate of participation.
The Bill also stipulated that $389,285 would be spent on the study, while $49,285 will be for legal costs. It’s likely that the Bill would be passed, given the state’s stance on crypto.
Colorado to accept tax payments in crypto
In February, the governor of Colorado, Jared Polis, announced that the state would accept tax payments in Cryptocurrencies. Then, he stated that this was the next logical step on the path to digital statehood.
Notably, Colorado is not the only state that’s making crypto-related moves. California’s governor recently signed an executive order that asked some government agencies to study cryptocurrencies so that they can create a comprehensive framework. Others like Fairfax County in Virginia have plans to invest part of their pension funds into crypto.
All of this shows the growing acceptance of crypto by the government, and with President Biden’s executive order expected this year, the much-needed regulatory clarity would help increase the adoption of crypto.
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