BLOCKCHAIN COUNCIL MEETING Thursday, January 31, :00 p.m 3:00 p.m. Dial-in: , Pin: # AGENDA

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1 2:00 p.m. Call to Order BLOCKCHAIN COUNCIL MEETING Thursday, January 31, :00 p.m 3:00 p.m. Dial-in: , Pin: # AGENDA 2:05 p.m. Review Meeting Minutes Jan 15, :05 p.m. Update on Legislation Digital Token Act Other (Senator Tate) 2:20 p.m. Blockchain Day at the Capitol 2:40 p.m. Working Group Updates 3:00 p.m. Adjourn 1600 Broadway, Suite 2500, Denver, CO USA P F

2 MEETING DATE January 15, 2019 COUNCIL FOR THE ADVANCEMENT OF BLOCKCHAIN MEETING SUMMARY January 15, :00 p.m.-4:00 p.m. MEETING PARTICIPANTS A. Council Members Dan Baer, Paul Foley, Eric Kintner, Tracy Kraft-Tharp, Betsy Markey, Matt McClintock, Angie Paccione, Hannah Parsons, Scott Sanderson, Sasha Shtern, B. Staff Jana Persky MEETING SUMMARY The meeting was called to order at 2 p.m. A. Introduce New Members The Council welcomed Betsy Markey (replacing Stephanie Copeland) and Angie Paccione (replacing Dan Baer), and also acknowledged that Theresa Szczurek would be replacing Suma Nallapati. B. Minutes December 11, 2018 Parsons motioned to approve the minutes from the December 11, 2018 meeting as written. Foley seconded the motion. Motion passed unanimously. C. Review Blockchain Council Report Council agreed to finalize Blockchain Report by Friday, Jan 18. Final copy of report will be shared at Jan 31 meeting. D. Discuss Working Groups and Future Council Organization Council agreed to set up the following working groups: o A. Other States'/Federal Legislation (Matt, Paul Q.) o B. Government Use Case Pilots (Hannah P.) o C. Higher Education (Angie, Hannah P.) o D. Banking Services (Sasha + Scott, Patty) o E. Taxation/Labor (Scott + Matt, Eric K.) o F. Uniform VC Law (Scott) o G. County Data Uniformity (Sasha) o H. FinTech Point of Contact (Paul F.) Council agreed to use Google Docs to collect ideas, and slack channels only if group lead requested it Council agreed to have a Working Group update by Jan 31 meeting and a mission statement completed by Feb 14 meeting Council agreed on the importance of publicizing our work at different conferences etc. E. Update on Legislation

3 The Colorado Commission on Uniform State Laws did not advance the virtual currency bill out of committee. Representative Tipper expressed interest in taking up the issue in the future, so the Council will reach out to her. The Digital Token Act has been introduced into the state Senate, sponsored by Senators Fenberg and Tate Markey and Persky shared that the Polis administration is supportive of the bill and has signed off on the bill going forward with OEDIT support Kintner will testify at the Senate Committee hearing on January 22 nd Kraft-Tharp asked for a simplified fact sheet Council discussed Department of Revenue s concerns with the Cryptocurrency Taxation Fairness Act and generally agreed that the logistical hurdles would be very difficult to fight. With all agenda items discussed, the meeting adjourned at 4:00pm.

4 SB Senator Tate, Senator Fenberg, Representative Kraft-Tharp, Representative McKean Cryptocurrency Exemption Colorado Digital Token Act The Cryptocurrency Exemption Colorado Digital Token Act (Act) was introduced to streamline regulation of digital tokens and provide regulatory clarity for companies raising growth capital with digital tokens. The Act provides a narrow exemption under the Colorado Securities Act for issuers of digital tokens that are being used to purchase goods, services or content. An example of this type of digital token could be Spotify Coin, where Spotify pre-sells subscriptions to new content through the sale of a digital token, and then uses the proceeds from that sale to actually develop the content. This is similar to crowd-funding platforms like Indiegogo or Kickstarter. This Act will support innovation and entrepreneurs in Colorado o The blockchain industry is growing in size and strength, but a lack of regulatory clarity impedes innovation o This Act will send a signal that Colorado is a leader in providing clear and thoughtful regulation of blockchain and virtual currency This Act is narrowly targeted to create an exemption for digital token offerings that are clearly not securities o The primary purpose of the token must be a consumptive purpose (i.e., to purchase goods, services, or content) o The token cannot be marketed for a speculative or investment purpose o The token s consumptive purpose must be available within 6 months of the time of sale Consumers will remain protected under the Colorado Securities Act o Issuers or exchanges seeking an exemption must file notice with the Colorado Securities Commissioner o This Act authorizes the Securities Commission to adopt rules to implement the Act This Act was developed through the work of the Blockchain Council o Governor Hickenlooper appointed 16 industry leaders, attorneys, government agency leaders and state legislators to develop a legal framework for blockchain in Colorado o Stakeholders across the industry and the government provided input on the draft of this bill

5 Blockchain Day at the Capitol Morning of February 27 th (exact time TBD) Goals include: Providing educational opportunities to legislators Showcasing potential use cases, products and companies Demonstrating the interest and economic impact of the community Structure Presentation and exhibition space Gov. Polis has been invited attendance TBD Team Lead: Paul Quigley