To become a true digital state, Colorado is pushing a bill that focuses on how security tokens can be used for raising state capital. The Colorado Senate Bill 25 has recently put forward two committees in the House of Representatives. If passed, it will approve the study of security tokens as a potential way to fundraise.
The Bill was first initiated in the Senate Chamber in February and was passed in March. It’s currently in the House of Representatives, where two committees have amended it. As per available records, the House Appropriations Committee amended and advanced it on May 5.
The bill states, “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 state treasurer is required to complete the study and report the study findings to the joint budget committee and finance committee of the general assembly by March 1, 2023, and to update the study findings on the department of the treasury’s website.
Under the bill, a “security token” is described as a digital liquid contract made secure and verifiable via blockchain technology. Such that it establishes its holder’s right to a fraction of a financial asset such as a bond, stock, or certificate of participation.
The state treasurer will determine whether the use of security token offerings for state capital financing is in the best interest of the state. After which it will approve the security token offerings for any state capital financing managed by the state treasurer.
The bill also estimated that $389,285 would be spent on the study, whereas $49,285 will be for legal costs. It’s likely that the Bill would be passed, considering the state’s stance on crypto.
Moreover, the Governor of Colorado Jared Polis previously stated that he is planning to enable people to pay tier tax and buy licenses in crypto by mid-2022. In February, Jared Polis also met Ethereum founder Vitalik Buterin at ETHDenver to make Colorado the first complete digital state in the nation. With this latest bill, it will surely be a step ahead in becoming the nation’s true digital state.
