The U.S state of Colorado introduced the digital token act which will permit the transactions of digital tokens. Digital token act define the term ‘digital token’ in the sense of blockchain technology. According to this legislation:A “digital token” is defined as a digital unit that is:
created by deploying computer code to a blockchain network and/or in response to verification or collection of transactions relating to a digital ledger or blockchain;
recorded in a digital ledger or database that is chronological, consensus-based, decentralized, and mathematically verified in nature; and
capable of being traded or transferred between persons without an intermediary or custodian of value.
The legislations also points out that: ‘digital token” must primarily have a “consumptive purpose” at the time of issuance or within 180 days after sale, and not be offered or sold for speculative or investment purposes’. The act will become law and is set to get in motion from 29th August 2019..