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CryptoCann™ Report: Colorado senators introduce bill to exempt digital tokens from US securities law while new data show 2018 a banner year for cannabis companies

On the cannabis front, new data suggest that 2018 was a record year for cannabis companies
US Senate
Stephen Fenberg, a Colorado Democrat, and Jack Tate, a Republican, have introduced a bill called the Colorado Digital Token Act

The Crypto Report

While US lawmakers have been skeptical about cryptocurrency, some are willing to embrace the idea of digital assets.

Two Colorado senators have introduced legislation that aims to exempt cryptocurrencies and other digital tokens from securities law, per a CoinDesk report.

Late last week, senators Stephen Fenberg, a Democrat, and Jack Tate, a Republican, together lodged a bill called the “Colorado Digital Token Act.” It suggests digital tokens should be excluded from securities laws if they are not meant for “speculative or investment” purposes, per CoinDesk.

The Colorado Digital Token Act “will enable Colorado businesses that use cryptoeconomic systems to obtain growth capital to help grow and expand their businesses, thereby promoting the formation and growth of local companies and the accompanying job creation and helping make Colorado a hub for companies that are building new forms of decentralized “Web 3.0” platforms and applications,” the bill states, according to CoinDesk.

In another piece of crypto news, it appears that while Japan’s financial regulators have jettisoned any moves to permit listed derivatives based on cryptocurrencies, they could be open to giving the green light to exchange-traded funds tracking the asset class.

According to a Bloomberg report citing a single source, the country’s Financial Services Agency is considering the extent of interest from the financial industry in exchange-traded funds tracking digital currencies.  

The move comes after Japanese regulator opted to not consider changes to laws in the country that would have cracked the door open for crypto futures and options to be listed, per Bloomberg.

READ: Bitcoin vs Altcoins: Why does bitcoin dominate the crypto market?

The Cann Report

On the cannabis front, meanwhile, new data suggest that 2018 was a record year for cannabis companies.

According to Viridian Capital Advisors, cannabis companies raised $13.8 billion last year and more than 300 mergers and acquisitions were done across the sector, per a Marijuana Business Daily report.

This showing represents a frenzy of activity compared with 2017, when cannabis companies raised $3.5 billion and roughly 153 M&A deals took place, according to Marijuana Business Daily.

In other news, a report from Canada’s CBC News suggests that more than 12 illegal cannabis shops are still up and running in Toronto, but closing their doors is a “complex process.”

The city’s municipal licensing and standards department is now scrutinizing 16 illegal stores, according to CBC.

Efforts are being made to tag-team with Toronto’s police to “close all illegal storefronts that are found to be open and operating,” according to the CBC story, which quotes Toronto spokesperson Lyne Kale. But proceeding with this effort is turning out to be a “complex process involving a number of steps.”

Contact Ellen Kelleher at [email protected]

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