On March 6, the Colorado Governor signed SB 19-23, which provides limited exemptions from the state’s securities registration and licensing requirements for persons dealing in certain types of digital tokens. The “Colorado Digital Token Act” (the Act) provides issuer exemptions for digital tokens sold for a “consumptive purpose”—the token is used in exchange for a good, service, or content—rather than a “speculative or investment purpose.” Specifically, the Act attempts to reduce regulatory uncertainty by providing a safe harbor from state securities laws for persons that meet the specified conditions. Subject to the filing of a referendum petition, the Act will take effect August 2.