H_BUS_2018A 04/12/2018 01:32:34 PM Committee Summary

Representative Melton introduced House Bill 18-1220.  He distributed amendment L.002 (Attachment A), which is a strike-below amendment.  As amended, the bill defines the term "open blockchain token" and specifies that the definition of "investment contract" does not include an open blockchain token that is developed or sold for a consumptive purpose where the buyer at or near the time of sale has no expectation of profit.  He responded to questions from the committee.

Representative Kraft-Tharp asked those in the audience who were in favor and opposed to the bill to stand.

Jerry Rome, Securities Commissioner, Department of Regulatory Agencies, testified regarding the bill and potential amendments and responded to questions from the committee regarding initial coin offerings and blockchain tokens.  He spoke regarding the state's securities laws and how they relate to the provisions of the bill.

Eric Weissmann, Centazo, testified in support of amendment L.002.

Cooper Kernan, CU Blockchain, spoke in support of innovation in the blockchain arena.

Justin Ellis, Ideas by Nature, testified regarding the bill.

Scott Sanderson, representing himself, testified in support of amendment L.002.

Hannah Parsons, National Cybersecurity Center, testified on the bill from a neutral position. She responded to questions from the committee.

Jill Richmond, Digital Asset Trade Association, testified in support of the bill, as amended by L.002.

David Gold, Access Venture Partners, testified in support of the bill as amended by L.002, and discussed the differences between utility tokens and security tokens.

Michael Perklin, ShapeShift, testified in support of the bill as amended by L.002.

Paul Quigley, BlocLab Enterprises, testified in support of the bill as amended by L.002.

Mark Jackson, Microtick, testified in support of the bill as amended by L.002.

Jeff Perrin, the Spiga Group, testified in support of the bill as amended by L.002.