Colorado’s Governor Jared Polis has signed a new law that exempts cryptocurrencies from securities laws. The bill was first introduced in January, described as providing “limited exemptions from the securities registration and securities broker-dealer and salesperson licensing requirements for persons dealing in digital tokens.”

The Digital Token Act, as it is called, will make the application of blockchain technology and growth of related companies in the space much easier, as digital assets are not subject to securities laws that would otherwise encumber them with stricter regulation.

Digital assets are here considered to be for “consumptive purposes,” which means they will not face prohibition if they meet all of the criteria. “Consumptive purposes” is defined as a “means to provide or receive goods, services, or content, including access to goods, services, or content.”

Governor Polis highlighted the decentralized benefits of the technology:

The act also makes statements on the potential of blockchain technology to attract entrepreneurs and better tech systems:

The act will take effect on August 2.

In the past year, an increasing number of states in the U.S. have opened themselves up to blockchain technology and cryptocurrencies, including Wyoming and New Hampshire.

Colorado has stepped up its focus on the space. As far back as January 2018, lawmakers in Colorado introduced a bill in the United States Senate that suggested blockchain technology should be used to protect private data from cyber attacks.

Meanwhile, other states have also considered how the technology could be used to bolster the existing economy and tech systems. Wyoming, a state pioneering blockchain application, has passed multiple bills, including one that recognized cryptocurrencies as money.