A new bill to exempt cryptocurrencies from some securities laws is currently under consideration by the Colorado Senate, documents released on Jan. 4 confirm.

A bipartisan effort sponsored at Senate level by Republican Jack Tate and Democrat Steve Fenberg, the “Colorado Digital Token Act” aims to offer limited extra freedoms for cryptocurrencies and traders.

The move comes as local regulators crack down on illegitimate offerings in the industry in a bid to formalize the local landscape.

“The bill provides limited exemptions from the securities registration and securities broker-dealer and salesperson licensing requirements for persons dealing in digital tokens,” a summary of the proposals reads. It continues:

“‘Digital token’ is defined as a digital unit with specified characteristics, secured through a decentralized ledger or database, exchangeable for goods or services, and capable of being traded or transferred between persons without an intermediary or custodian of value.”

A previous effort governing token identity — one which would have clarified whether such digital tokens were securities — was struck down by the Senate in May last year.

At the same time, lawmakers appear hopeful that attitudes towards both crypto and blockchain are becoming more enlightened.

“Blockchain technology has the potential to create new forms of decentralized ‘Web 3.0’ platforms and applications that have advantages over the current centralized internet platforms and applications,” the bill continues elsewhere, noting:

“Colorado has become a hub for companies and entrepreneurs that seek to utilize cryptoeconomic systems to power blockchain technology-based business models.”

The United States as a whole remains a patchwork jurisdiction for such legislation, with some of the more stringent regulatory moves such as New York’s BitLicense continuing to cause a backlash from industry businesses.