Colorado Senate is looking to utilize cryptocurrency

Colorado Senate is looking to utilize cryptocurrency

In the Colorado House of Representatives, Senate Bill 25 just cleared two committees. If enacted, it will authorize the research of security tokens as a possible means of raising state funds. Without selling the underlying asset directly, a security token sale produces fractional tokens of the asset. As indicated below, the measure aims to investigate a new type of public capital funding.

According to the bill’s official summary and content, the state treasurer must investigate the viability of employing security token sales for state capital funding and evaluate whether doing so is in the state’s best interest.

“The state treasurer is required to complete the study and report the study findings to the finance committees and joint budget committee of the general assembly by March 1, 2023, and to post the study findings on the department of the treasury’s website. If the state treasurer determines that the use of security token offerings for state capital financing is feasible and in the best interest of the state, the state treasurer may use security token offerings for any state capital financing managed by the state treasurer.”

A security token, according to the bill, is a virtual, liquid agreement that establishes its holder’s claim to a portion of a financial asset including a share, bonds, or certification of membership and is verifiable and secure using blockchain technology. The research will cost $389,285 and legal charges would cost $49,285 according to the bill. Given the state’s attitude on cryptocurrency, it’s probable that the Bill will pass.

Colorado became the first US state to accept cryptocurrency tax payments in February, describing the move as the “next logical step” on the route to digital statehood. Colorado’s governor, Jared Polis, said in a tweet that the government will accept cryptocurrency payments that would be converted to dollars and put in the state’s treasury.

DISCLAIMER: The Information on this website is provided as general market commentary and does not constitute investment advice. We encourage you to do your own research before investing.

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Jai Hamid

Coincu News