Crypto Law Profile
Repealed Colorado statute that created state securities registration and licensing exemptions for qualifying consumptive-purpose digital tokens. Enacted in 2019; repealed by SB24-180 effective Aug. 7, 2024.
The Colorado Digital Token Act was a Colorado securities-law exemption for certain digital tokens with a primarily consumptive purpose. Enacted through SB19-023 and codified at C.R.S. § 11-51-308.7, it became effective Aug. 2, 2019 and applied to conduct occurring on or after that date. As of June 3, 2026, the Act is no longer in force: SB24-180 repealed the section, and the repeal became effective Aug. 7, 2024.
During its effective period, the Act addressed Colorado Securities Act uncertainty for token issuers and intermediaries by creating conditional exemptions from securities registration and broker-dealer or salesperson licensing. It did not operate as a general federal safe harbor, and it did not classify every cryptocurrency as outside securities law. Its operative provisions were limited to digital tokens meeting the statutory definition and to parties satisfying notice, marketing, use, and rule-compliance conditions.
The Act provided that an offer or sale of a qualifying digital token could be exempt from Colorado’s securities registration requirement when the issuer filed a notice of intent with the Securities Commissioner, the token’s primary purpose was consumptive, and the token was marketed for use rather than for speculative or investment purposes. If the consumptive purpose was not available at sale, the statute required availability within 180 days, a restriction on resale or transfer until the consumptive purpose became available, and a clear buyer acknowledgment of consumptive intent.
The Act also addressed persons engaged in effecting or attempting to effect the purchase, sale, or transfer of digital tokens. A person could qualify for a Colorado broker-dealer or salesperson licensing exemption only if the person acted after implementing rules were initially promulgated, filed a notice of intent, complied with the statutory and rule conditions, and the token could be used for a consumptive purpose at the time of the transaction.
The statutory definition of “digital token” focused on a digital unit created through a digital ledger, database, or blockchain-network code; recorded in a chronological, consensus-based, decentralized, and mathematically verified ledger or database; and capable of being transferred without an intermediary or custodian of value. “Consumptive purpose” meant providing or receiving goods, services, or content, including access to them.
Notice filings were central to the exemption structure. Issuers and persons effecting transfers had to file before relying on the exemption, and materially inaccurate notices had to be amended within 30 days. The Securities Commissioner was authorized to adopt rules to implement or enforce the section and to provide exemptions or waivers.
| Date | Event |
|---|---|
| Jan. 4, 2019 | SB19-023 was introduced in the Colorado Senate. |
| Mar. 6, 2019 | Governor Jared Polis approved SB19-023. |
| Aug. 2, 2019 | The Act became effective, and initial Division of Securities rules took effect. |
| May 17, 2024 | Governor approved SB24-180, repealing C.R.S. § 11-51-308.7. |
| Aug. 7, 2024 | The repeal became effective. |
The Colorado Digital Token Act is best understood as a historical Colorado state-law framework for utility-token style offerings and transfer activity. Its affected actors included token issuers, persons facilitating digital-token transactions, and buyers of tokens represented as having a consumptive purpose. Because the law has been repealed, current Colorado analysis should start with the Colorado Securities Act and current Division of Securities rules rather than the former digital-token exemption.
The Act remains relevant for historical research, comparison with other state token laws, and review of conduct during the 2019–2024 period. For current publication, the profile should be labeled “Repealed” and linked to the Colorado jurisdiction archive, the SB19-023 enactment record, and the SB24-180 repeal record.
Covered offers or sales of qualifying consumptive-purpose digital tokens when notice, marketing, availability, resale, buyer-acknowledgment, and rule conditions were met.
Covered persons effecting token purchases, sales, or transfers if they filed notice, complied with rules, and handled tokens usable for a consumptive purpose.
Issuers and transfer intermediaries had to file notice before relying on an exemption and amend materially inaccurate notices within 30 days.
Defined a digital token as a digital unit created through ledger activity or blockchain code, recorded in a decentralized verified ledger, and transferable without a custodian.
Authorized Securities Commissioner rules and stated that failure to meet the exemption alone created no presumption of a Colorado Securities Act violation.
SB24-180 repealed C.R.S. § 11-51-308.7, and current Division of Securities rules list Digital Token Act rules 51-3.34 to 51-3.36 as repealed.
Bill introduced in the Colorado Senate and assigned to Finance.
Colorado Senate passed the bill on third reading.
Colorado House passed the bill on third reading without amendments.
Governor approved the bill enacting the Colorado Digital Token Act.
Act became effective and applied to conduct on or after the applicable effective date.
Division of Securities emergency rules implementing the Act became effective.
Repeal bill introduced in the Colorado Senate and assigned to Finance.
Governor approved the repeal of C.R.S. § 11-51-308.7.
Repeal of the Colorado Digital Token Act became effective.
Consumers, Token intermediaries, Token issuers
Cryptocurrencies, Digital tokens
Profile tracks the original 2019 statute and notes repeal by SB24-180, ch. 197, effective Aug. 7, 2024. Treat provisions as historical unless discussing conduct during the effective period.
