HB 18-1220

HB 18-1220 is a Colorado bill that clarifies the legal status of people who deal with cryptocurrencies like Bitcoin. It ensures that these individuals are not regulated under securities laws but instead fall under money transmitter regulations if they buy, sell, or exchange cryptocurrency for fiat currency (like dollars). The bill also introduces a new term called "open blockchain token" to describe units of cryptocurrency and excludes them from being considered securities as long as certain standards are met. Since the status is signed, this means the bill has been approved by both houses of the Colorado legislature and signed into law by the governor, making it official state legislation.

Official Summary

Under current law, persons who offer cryptocurrency "wallets", buy or sell cryptocurrencies, or exchange cryptocurrency with fiat currency are not clearly outside the scope of activity subject to the "Colorado Securities Act" or the "Money Transmitters Act". The bill defines a new term, "open blockchain token", to describe a unit of cryptocurrency (e.g., bitcoin), and amends the definition of a security to exclude an open blockchain token so long as it is developed and sold in accordance with specified standards. (Note: This summary applies to the reengrossed version of this bill as introduced in the second house.) , Read More

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