Legislation filed earlier this year in Colorado would, if passed, approve a study into the potential use of security tokens to raise state capital.
Colorado Senate Bill 25 was first introduced in February and ultimately passed that chamber in mid-March. It was then sent to the House of Representatives. Two committees have since amended and advanced the measure, including actions on May 5 by the House Appropriations Committee, according to public records.
According to an official summary and text of the bill, it "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 goes on to state:
"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."
The legislation also outlines definitional terms for security tokens, and includes appropriations of $389,285 and $49,285, separately, to fund the study and cover associated legal costs.