Coloradans take immense pride in belonging to a state that embodies the spirit of trailblazers and innovators. Our rich history is marked by individuals who ventured into the unknown, seeking new opportunities and pushing boundaries. Whether it’s the legacy of the 19th century gold rush or the cutting-edge technological advancements of today’s builders, we’re driven and inspired by the courageous pioneering mindset.

This isn’t just rhetoric that sounds good on a bumper sticker. Our deeply rooted spirit of innovation is reflected in economic data showing that Colorado is a leading tech-driven state, ranking among the best in the nation. In 2021, Colorado’s tech industry generated over $76 billion in Gross State Product and was the second most concentrated tech industry economy, only behind Massachusetts.

Colorado’s thriving tech ecosystem is no mere coincidence — it’s the result of deliberate policy choices made in the past. The state’s proactive decisions created a fertile environment that attracts and nurtures tech jobs. From strategic investments to forward-thinking regulations, our commitment to encouraging innovation positioned it as a hub for innovation and is a testament to the lasting impact of well-planned policy choices.

Today, another bright horizon beckons our pioneer spirit. A new world is taking shape, where decentralized blockchains improve government transparency and financial inclusion for everyday Americans — to name just a few potential benefits.

How can Colorado continue to lead in this changing environment? The answers lie in the pro-tech policies that got us here in the first place; a similar forward-thinking approach around the blockchain industry can sow the seeds for comparable growth in the years to come.

Despite being in its early stages of development, the crypto industry is already proving advantageous for the state. The annual ETHDENVER conference — being held Feb. 23 to March 3 — is a prominent event in the crypto space that attracts participants from around the globe. This year’s gathering is expected to attract upward of 20,000 attendees from over 100 countries, generating millions for the state’s economy. This not only underscores the current positive impact of the industry on our economy, but also hints at the promising prospects that lie ahead if supportive policies are implemented.

As the founder of the grassroots community that spawned ETHDENVER, I have had a front-row seat to this rapid growth. I’m proud of Colorado’s thriving blockchain and digital asset industry, and immensely excited for its potential to create jobs and attract talent from across the globe.

It’s in our DNA: Colorado has fostered a culture of curiosity and exploration from the beginning. This eagerness to explore and build has become synonymous with the state’s identity, making it a beacon for those who are proud to be pioneers and innovators. And while Colorado has taken initial steps to embrace blockchain technology, like accepting cryptocurrency as a form of payment for state taxes and at the DMV, more can be done to position the state for growth.

Colorado’s pro-tech blueprint — from tax credits, grants, financing options, additional incentives from the state and other economic development organizations, to robust programs at our universities, startups and established companies — offers a proven path to future success for this burgeoning ecosystem. However, clarity at the federal level is needed as well, and on that front, there’s much work to be done.

Currently, the blockchain industry is hampered by uncertainty stemming from a clearly defined challenge: There’s no clear federal regulatory framework for digital assets. This has become a significant factor driving numerous crypto and Web3 businesses to relocate overseas, with our country’s share of blockchain developers declining 14% since 2018. The “forced offshoring” trend is particularly frustrating for the many industry leaders in Colorado who express a genuine desire to adhere to commonsense laws. Instead, the ambiguous regulatory landscape has created a highly unstable business environment, hindering strategic planning and growth.

Not surprisingly, innovators are being driven to overseas markets where there are fewer regulatory headwinds. This offshoring not only affects the local economy in Colorado, but also contributes to a broader global shift in industry dynamics — precisely at a time when Americans across the political spectrum are increasingly concerned about jobs leaving the country.

The encouraging news is that many lawmakers in Washington have recognized this problem, and have responded with bills that provide much-needed clarity to how digital assets are regulated. One promising example is the Financial Innovation and Technology for the 21st Century Act, introduced last year. A legislative solution along these lines would resolve regulatory ambiguity by establishing a market structure for this asset class, providing a much-needed framework for continued industry growth.

Tomorrow’s economy will be based, increasingly, on blockchain platforms that empower users with digital property rights, increased privacy and greater financial autonomy. Smart decisions from our lawmakers at the state and federal levels can ensure that our adventurous, enterprising spirit continues to flourish as we venture ahead into another promising frontier.

Kent Barton is the founder of Ethereum Denver, a grassroots community dedicated to decentralized computing. He’s been working in the crypto industry for nearly a decade and is a steward of the annual ETHDENVER innovation festival and hackathon.

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