HB 18-1220 Summary

• Subjects persons who offer cryptocurrency wallets, buy or sell cryptocurrencies, or exchange cryptocurrency with fiat currency to regulation under Colorado's Money Transmitters Act.

• Defines "open blockchain token" as a digital unit created through transaction verification, blockchain computer code deployment, or combinations thereof, recorded on a decentralized and mathematically verified digital ledger, and capable of being traded without intermediaries.

• Excludes open blockchain tokens from securities regulation if developed or sold for consumptive purposes where the buyer has no expectation of profit at or near the time of sale.

• Defines "consumptive purpose" as tokens exchangeable for or providing access to goods, services, or content.

• Takes effect August 8, 2018, unless a referendum petition is filed, in which case it requires approval by voters at the November 2018 general election.