In this edition of The Daily we cover new legislation that could make Colorado more attractive to digital businesses and token issuers, the launch of a new cryptocurrency index fund, and the latest miner to succumb to crypto winter.
Colorado Digital Token Act
The governor of the U.S. state of Colorado has signed the crypto-friendly “Digital Token Act” into law. The act, which was was introduced in January, is a major step towards creating a hospitable regulatory environment for the digital assets industry to establish itself in Colorado. This is because it extends certain exemptions from state securities laws for cryptocurrencies, making businesses less hampered by antiquated rules.
Explaining the rationale for the exemptions, the document notes that Colorado has become a hub for companies and entrepreneurs that seek to utilize “cryptoeconomic systems” to power their business models. The costs and complexities of state securities registration can outweigh the benefits to Colorado businesses seeking to raise capital and create new platforms within the digital economy.
This act will take effect following the expiration of a 90-day period after final adjournment of the Colorado General Assembly, the state’s legislature, expected to occur on August 2, 2019.
Exciting day for #blockchain technology. @GovofCO @jaredpolis signed the #Digital Token Act today with key legislators, Attorney General @pweiser, and #Colorado cabinet members Patty Salazar with @DORAColorado, @BetsyMarkey with OEDIT, and @TheresaSzczurek of @OITColorado. pic.twitter.com/erOEloEdpy
— TheresaSzczurek (@TheresaSzczurek) March 7, 2019
ITI Funds Crypto Index
Investment management platform ITI Funds has launched its own Crypto Index Fund based on an index administered by MV Index Solutions (MVIS). The new fund aims to give institutional investors diversified access to the crypto market, through exposure to selected assets among the 30 most capitalized cryptocurrencies including BTC, ETH, XRP, BCH, and LTC.
To be included in the index, assets must be traded on licensed exchanges with proper liquidity and available for insured cold storage. Capping each asset at 15 percent on a quarterly basis is meant to keep the index suitably diversified.
Fortress Blockchain Succumbs to Crypto Winter
Fortress Blockchain, a Vancouver-based company listed on the TSX Venture Exchange, has exited the cryptocurrency mining business. The company has announced it’s deactivated all mining hardware located at its Grant County facility on March 5, 2019. Fortress’ management has determined that the marginal profitability of cryptocurrency mining and the risk of further decline, “along with increased regulatory costs and oversight,” does not justify continued operations.
Fortress still has over CAD $10 million left under its control and plans to re-establish itself in a yet to be determined business sector. Additionally, management is now looking for the most effective way to sell the mining equipment to recoup some of its investment and losses. It is anticipated that the company will soon change its name in order to no longer be associated with the term blockchain.
What do you think about today’s news tidbits? Share your thoughts in the comments section below.
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