Interim Regulatory Guidance: Virtual Currency and the Colorado Money Transmission Modernization Act ("MTMA")
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Research, not advice. Part of the Bitcoin research archive (October 2026). Claims labelled unverified, contested or fringe are reported, not endorsed; statuses of bills and rules are as of the date checked. Government, court and patent records are public domain; the research notes are CC BY 4.0.
Interim Regulatory Guidance: Virtual Currency and the Colorado Money
Transmission Modernization Act (“MTMA”)
Issued: December 18, 2025
I. Purpose
This guidance outlines the Division of Banking’s interpretation of the Colorado
Money Transmission Modernization Act (“MTMA”) as it relates to whether a person 1
or organization engaged in the business of buying, selling and/or facilitating the
transfer of virtual currency within the state must obtain a license as a money
transmitter under Colorado law. Further, this document clarifies the definition of
“money transmission” under the MTMA, and provides guidance as to the types of
virtual currency transactions that fall within the scope of that definition.
This guidance does not amend the Act and is subject to change and/or
withdrawal by the State Bank Commissioner or the State Banking Board. In
addition, this guidance does not address applicable regulations, rules, or other
guidance promulgated by the Financial Crimes Enforcement Network or other state
regulators. Further, the Division cannot provide legal or business advice.
II. Background
A. MTMA
The MTMA took effect on August 6, 2025, repealing and reenacting C.R.S. §
11-110-101 et seq. (previously the “Colorado Money Transmitters Act”). 2 The MTMA
is a licensing statute, requiring persons engaged in the business of money
transmission to obtain a license from the State Banking Board. 3 The MTMA has been
interpreted in accordance with the stated legislative directive, as follows:
(1) The general assembly finds and declares that the purpose of this
article 110 is to: (a) Ensure states can coordinate in all areas of
regulation, licensing, and supervision to eliminate unnecessary
regulatory burden and more effectively utilize regulator resources; (b)
Protect the public from financial crime; (c) Standardize the types of
activities that are subject to licensing or otherwise exempt from
licensing; and (d) Modernize safety and soundness requirements to
1 “Person” means “any natural person, firm, association, partnership, registered limited liability
partnership, syndicate, joint stock company, unincorporated company or association, limited liability
company, common law trust, or any corporation organized under the laws of the United States or of
any state or territory of the United States or of any foreign country.” C.R.S. § 11-110-103(14).
2 See HB 25-1201 (signed April 18, 2025) (repealing and reenacting with amendments article 110 of
title 11) (“This act takes effect at 12:01 a.m. on the day following the expiration of the ninety-day period
after final adjournment of the general assembly . . . .”). The 2025 legislative session adjourned on May
7, 2025. Accordingly, the MTMA became effective ninety-one days later—on August 6, 2025 at 12:01
a.m.
3 C.R.S. § 11-110-105(1).
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ensure customer money is protected in an environment that supports
innovative and competitive business practices. 4
The MTMA has further been interpreted in accordance with the statutory provision
providing that “in applying and construing [the MTMA], consideration must be given
to the need to promote uniformity of the law with respect to its subject matter among
states that enact it.” 5 The MTMA is based in large part upon a model law approved
by the Conference of State Bank Supervisors (“CSBS”) Board of Directors. As of June
10, 2025, thirty-one states have enacted that model law in whole or in part. 6
The MTMA seeks to protect consumers from defaults in the payments made
through the transmission of money by requiring money transmitters to either post a
surety bond or escrow securities. 7 The MTMA also sets forth application criteria for
persons seeking licensure. 8 Under the MTMA, “money transmission” means “any of
the following: (I) Selling or issuing payment instruments to a person located in this
state; (II) Selling or issuing stored value to a person located in this state; or (III)
Receiving money for transmission from a person located in this state.” 9
Engaging in any of these three activities would require licensure under the
MTMA. This interim regulatory guidance clarifies whether the transmission of
virtual currency may under certain circumstances constitute money transmission
under the MTMA and thereby be subject to the licensure requirement.
B. Virtual Currency and the Colorado Vending of Digital Assets Act
The Colorado Vending of Digital Assets Act (“VDAA”), was signed on June 2,
2025 and is set to take effect on January 1, 2026. 10 The VDAA defines “Virtual
Currency” as:
a type of digital unit that is used as a medium of exchange or a form of
digitally stored value or that is incorporated into payment system
technology. “Virtual Currency” includes digital units that (I) have a
centralized repository or administrator, (II) are decentralized and have
no centralized repository or administrator, or (III) may be created or
obtained by computing or manufacturing effort. 11
Virtual currency does not include digital units used solely within gaming platforms
or consumer rewards programs. 12
4 C.R.S. § 11-110-102.
5 C.R.S. § 11-110-1201.
6 CSBS Money Transmission Modernization Act (MTMA), June 10, 2025, https://www.csbs.org/csbs-
money-transmission-modernization-act-mtma.
7 C.R.S. § 11-110-108.
8 C.R.S. § 11-110-107.
9 C.R.S. § 11-110-201(20)(a).
10 S.B. 25-079.
11 Id. § 11-112-102(4).
12 Id. § 11-112-102(4)(c).
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The VDAA further defines a “Virtual Currency Kiosk” as:
an electronic terminal acting as a mechanical agent of the owner or
operator to enable the owner or operator to facilitate the exchange of
virtual currency for other virtual currency or fiat currency, including by
(a) connecting to a separate virtual currency exchanger that performs
the actual virtual currency transmission; or (b) drawing upon the virtual
currency in the possession of the owner or operator of the electronic
terminal. 13
The VDAA requires owners and operators of Virtual Currency Kiosks to
disclose particular information to customers, including risks, information, and terms
of the transaction. 14 The owner or operator must ensure that the customer
acknowledges receipt of the disclosures and must provide a receipt to the customer
containing particular information. 15 The VDAA limits the daily transaction limit to
$2000 for new customers and $5000 for existing customers. 16 The VDAA also requires
owners/operators to allow a customer to cancel and receive a full refund under certain
circumstances. 17
Each transaction at Virtual Currency Kiosks shall be accompanied by a
Transaction Hash, defined as “a unique identifier made up of a string of characters
that acts as a record and provides proof that a transaction was verified and added to
blockchain technology.” 18 “Blockchain technology” is “a mathematically secured,
chronological, decentralized, distributed, and digital ledger or database that consists
of records of transactions that cannot be altered retroactively.” 19
C. Payment Stablecoin and the Federal GENIUS Act
The Guiding and Establishing National Innovation for US Stablecoins
(“GENIUS”) Act 20 was signed into law on July 18, 2025 and provides for the federal
regulation of a type of virtual currency called “payment stablecoin,” defined as
a digital asset-- (i) that is, or is designed to be, used as a means of
payment or settlement; and (ii) the issuer of which-- (I) is obligated to
convert, redeem, or repurchase for a fixed amount of monetary value,
not including a digital asset denominated in a fixed amount of monetary
value; and (II) represents that such issuer will maintain, or create the
13 Id. § 11-112-102(6).
14 Id. §§ 11-112-103(1) through 11-112-103(3).
15 Id. §§ 11-112-103(4), 11-112-103(5).
16 Id. § 11-112-103(6).
17 Id. § 11-112-103(7).
18 Id. § 11-112-102(3).
19 Id. § 11-112-102(1); C.R.S. § 24-36-121.5(2)(a).
20 12 U.S.C. § 5901 et seq.
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reasonable expectation that it will maintain, a stable value relative to
the value of a fixed amount of monetary value. 21
The GENIUS Act limits which entities are permitted to issue stablecoin. It
provides that “It shall be unlawful for any person other than a permitted payment
stablecoin issuer [(“PPSI”)] to issue a payment stablecoin in the United States.” 22 A
PPSI is “a person formed in the United States that is--(A) a subsidiary of an insured
depository institution that has been approved to issue payment stablecoins under
section 5904 of this title; (B) a Federal qualified payment stablecoin issuer
[(“FQPSI”)]; or (C) a State qualified payment stablecoin issuer [(“SQPSI”)].” 23 PPSIs
are only permitted to engage in certain activities:
A permitted payment stablecoin issuer may only-- (i) issue payment
stablecoins; (ii) redeem payment stablecoins; (iii) manage related
reserves, including purchasing, selling, and holding reserve assets or
providing custodial services for reserve assets, consistent with State and
Federal law; (iv) provide custodial or safekeeping services for payment
stablecoins, required reserves, or private keys of payment stablecoins,
consistent with this chapter; and (v) undertake other activities that
directly support any of the activities described in clauses (i) through
(iv). 24
If an entity becomes a FQPSI, the GENIUS Act then circumscribes a state’s
ability to further regulate that entity. The subsection of the GENIUS Act entitled
“[r]elation to other licensing requirements” provides that “[t]he provisions of this
section supersede and preempt any State requirement for a charter, license, or other
authorization to do business with respect to a [FQPSI] or subsidiary of an insured
depository institution or credit union that is approved under this section to be a
permitted payment stablecoin issuer.” 25
III. Actions Requiring Licensure under the MTMA
The Colorado Division of Banking provides the following interpretive guidance
regarding the activities that are considered to be “money transmission” under the
MTMA and which may require licensure as a money transmitter under that statute,
in light of the federal GENIUS Act.
A. Receiving Money
Under the MTMA, “[r]eceiving money for transmission from a person located
in this state” would require licensure. “Money” is defined as “a medium of exchange
that is authorized or adopted by the United States or a foreign government,” and
21 12 U.S.C. § 5901(22)(A).
22 12 U.S.C. § 5902(a).
23 12 U.S.C. § 5901(23).
24 12 U.S.C. § 5903(a)(7)(A) (emphasis added).
25 12 U.S.C. § 5904(h) (emphasis added).
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“includes a monetary unit of account established by an intergovernmental
organization or by agreement between two or more governments.” 26 Pursuant to the
VDAA, GENIUS Act, or any other current statute, virtual currency does not fall
within this definition of “money.” 27 Accordingly, a person who receives virtual
currency for transmission from a person located in this state does not need a money
transmitter license under the this provision of the MTMA (C.R.S. § 11-110-
201(20)(a)(III)).
B. Selling or Issuing Payment Instruments
Under the MTMA, “[s]elling or issuing payment instruments to a person
located in this state” would require licensure. “Payment instrument” is defined as “a
written or electronic check, draft, money order, traveler’s check, or other written or
electronic instrument for the transmission or payment of money or monetary value,
whether or not negotiable.” 28
The definition of “payment instrument” is comprised of a list of items. The first
four items on the list—check, 29 draft, 30 money order, 31 and traveler’s check 32—are
well defined, and constitute traditional instruments for the transmission or payment
of money. Virtual currency does not fall into any of these categories.
The last item on the list is described more broadly as a “written or electronic
instrument for the transmission or payment of money or monetary value, whether or
not negotiable.” 33 The principle of construction ejusdem generis “provides that when
a general word or phrase follows a list of specific persons or things, the general word
or phrase will be interpreted to include only persons or things of the same type as
those listed.” Mounkes v. Indus. Claim Appeals Off. of State, 251 P.3d 485, 488 (Colo.
App. 2010) (interpreting the third item following the list of “expense accounts,
inventories, or other records or reports” would “include only those documents that,
26 C.R.S. § 11-110-201(19).
27 While the GENIUS Act provides for the federal regulation of payment stablecoin, it defines “money”
in the same way that the MTMA does, and does not itself define “payment stablecoin” to be “money.”
28 C.R.S. § 11-110-201(26)(a).
29 “‘Check’ means (i) a draft, other than a documentary draft, payable on demand and drawn on a bank,
(ii) a cashier’s check or teller’s check, or (iii) a demand draft. An instrument may be a check even
though it is described on its face by another term, such as “money order.” C.R.S. § 4-3-104(f).
30 A “draft” is a negotiable instrument that is an unconditional written order signed by the drawer
directing another person to pay a certain sum of money on demand or at a definite time to a third
person. C.R.S. §§ 4-3-104(a) and (e).
31 A “money order” is a negotiable draft issued by an authorized entity to a purchaser, in lieu of a
check, to be used to pay a debt or otherwise transmit funds upon the credit of the issuer. Black’s Law
Dictionary, 12th ed. (2024).
32 “‘Traveler’s check’ means an instrument that (i) is payable on demand, (ii) is drawn on or payable at
or through a bank, (iii) is designated by the term ‘traveler’s check’ or by a substantially similar term,
and (iv) requires, as a condition to payment, a countersignature by a person whose specimen signature
appears on the instrument.” C.R.S. § 4-3-104(i).
33 While “money” is specifically defined as “a medium of exchange that is authorized or adopted by the
United States or a foreign government,” “[m]onetary value” is “a medium of exchange, whether or not
redeemable in money.” C.R.S. § 11-110-201(18).
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like expense accounts and inventories, relate directly to an employer’s assets and
liabilities”); Cap. One, N.A. v. Colorado Dep’t of Revenue, 509 P.3d 1078, 1081 (Colo.
App. 2022) (interpreting the term “group or combination acting as a unit,” when listed
after the terms “firm,” “joint venture,” “partnership,” and “corporation,” to be “a
catchall term for other organizations that do not fit the legal definition of those listed
but which, like those listed, operate as a single organization”).
Applying ejusdem generis here to the statutory definition of “payment
instrument,” the term “written or electronic instrument for the transmission or
payment of money or monetary value, whether or not negotiable” is interpreted to
include instruments with similar qualities as checks, drafts, money orders, and
traveler’s checks. Those instruments would be limited to instruments ordering the
payment of a fixed amount of money or monetary value, payable to bearer or order on
demand, or at a definite time.
With respect to a person in the business of selling or issuing virtual currencies
to a person in Colorado, a license would not be required pursuant to C.R.S. § 11-110-
201(20)(a)(I) since the person is not engaged in the sale or issuance of a payment
instrument.
C. Selling or Issuing Stored Value
i. MTMA Definition of “Stored Value” includes “Payment
Stablecoin” as defined in GENIUS Act
Under the MTMA, the act of “[s]elling or issuing stored value to a person
located in this state” requires licensure as a money transmitter. The MTMA specifies
that the meanings of “stored value” and “payment instrument” are mutually
exclusive. 34 “Stored value” is defined as “monetary value that represents a claim
against the issuer evidenced by an electronic or digital record and that is intended
and accepted for use as a means of redemption for money or monetary value or
payment for goods or services.” 35
The term “stored value” is interpreted to include “payment stablecoins,” as
defined under the federal GENIUS Act. A payment stablecoin “represents a claim
against the issuer” because, by definition, a payment stablecoin issuer is obligated to
convert, redeem, or repurchase the stablecoin for a fixed amount of monetary value. 36
Additionally, the GENIUS Act requires a PPSI to “maintain identifiable reserves
backing the outstanding payment stablecoins of the permitted payment stablecoin
issuer on an at least 1 to 1 basis” with United States currency and “other similarly
liquid Federal Government-issued asset[s].” 37
34 C.R.S. §§ 11-110-201(30)(b) (“stored value . . . does not include a payment instrument”); 11-110-
201(26)(b) (“payment instrument . . . does not include stored value”).
35 C.R.S. § 11-110-201(30)(a).
36 12 U.S.C. § 5901(22)(A).
37 12 U.S.C. § 5903(a)(1).
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This interpretation is supported by guidance issued by the CSBS. Prior to the
passage of the GENIUS Act, the CSBS had similarly advised that “[m]any stablecoins
likely fit within the [MTMA] definition of stored value” and that [w]hen stablecoins
perform” as stored value, “they likely should be considered money transmission.” 38
However, other types of cryptocurrencies that are not payment stablecoins are not
“stored value” under the MTMA. This interpretation is grounded in the fact that these
virtual currencies do not “represent a claim against the issuer” because their value is
not set or guaranteed in any way by the issuer.
Accordingly, with respect to a person selling or issuing payment stablecoin (as
defined by the GENIUS Act) to a person in Colorado, the statutory terms of the
MTMA indicate that a license would be required pursuant to C.R.S. § 11-110-
201(20)(a)(II) since the person is engaged in the sale or issuance of stored value.
ii. The GENIUS Act Preempts MTMA Licensure Requirements
for Federally Qualified Payment Stablecoin Issuers
The terms of the MTMA indicate that a person who sells or issues payment
stablecoin is subject to the MTMA licensure requirement. However, the GENIUS Act
preempts this requirement. The GENIUS Act provides that only a FQPSI, SQPSI, or
approved subsidiary of a depository institution may issue payment stablecoin, and
that absent limited exceptions, “beginning on the date that is 3 years after July 18,
2025, it shall be unlawful for a digital asset service provider to offer or sell a payment
stablecoin to a person in the United States, unless the payment stablecoin is issued
by a permitted payment stablecoin issuer.” 39 If an entity becomes a FQPSI, the
GENIUS Act explicitly preempts any state from requiring “a charter, license, or other
authorization to do business” from that entity. Accordingly, if a person issues or sells
payment stablecoin to a person in Colorado, they need not obtain a license under the
MTMA.
iii. Implications for the VDAA
“Payment stablecoin” as defined in the GENIUS Act is a narrower subset of
“virtual currency” as defined in the VDAA. Accordingly, to the extent that virtual
currency transactions do not involve payment stablecoin, then the owners and/or
operators of virtual currency kiosks are not subject to MTMA licensure requirements.
However, if a virtual currency kiosk owner/operator issues or sells payment
stablecoin, they are subject to licensure requirements under the terms of the MTMA.
However, if the owner and/or operator of the virtual currency kiosk is a FQPSI, any
MTMA licensure requirement is preempted by the GENIUS Act.
38 CSBS Comment Letter on Cryptocurrencies, Sept. 27, 2021, https://www.csbs.org/policy/statements-
comments/csbs-letter-cryptocurrencies.
39 12 U.S.C. § 5902(b)(1).
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IV. Conclusion
“Money transmission” is an activity subject to licensure requirements under
the MTMA and may encompass certain types of virtual currency in specific instances.
Under the MTMA, money transmission is defined to include three categories of
activities: (I) Selling or issuing payment instruments to a person located in this state;
(II) Selling or issuing stored value to a person located in this state; or (III) Receiving
money for transmission from a person located in this state. A person who receives
virtual currency does not fall within the third category, and a person who sells or
issues virtual currency does not fall within the first category. Accordingly, these
activities are not subject to MTMA licensure requirements.
However, a person who sells or issues payment stablecoin—a particular type
of virtual currency defined in the GENIUS Act—engages in the activity of “[s]elling
or issuing stored value to a person located in this state.” Consequently, under the
terms of the MTMA, this activity is subject to licensure requirements. However, the
GENIUS Act preempts any state from subjecting a FQPSI to licensure requirements.
Accordingly, if a person is a FQPSI, they are not subject to MTMA licensure
requirements.
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