The New Year in Vermont saw a proposition in the state's General Assembly to help regulate blockchain technology. On January 3rd, State Senator Alison Clarkson introduced "An act relating to blockchain, cryptocurrency, and financial technology," which has now gone forward to the Committee on Economic Development, Housing, and General Affairs.
The bill mandates a number of reports on blockchain and cryptocurrencies and calls for a "Fintech Summit" between state and industry leaders to discuss promotional strategies. It also outlines how Vermont might classify certain businesses, especially those operating their own networks, under the heading "digital currency limited liability companies." In an unusual move, Senator Clarkson proposes that cryptocurrency itself be used to pay transaction taxes.
If the bill is passed, such companies would have to pay a tax whenever any digital currency transaction takes place but would be exempt from other applicable taxes. On creating any new cryptocurrency unit, transferring such a unit or trading it, a tax would be payable of an amount equivalent to $0.01.
The proposal follows up on previous interest in the new technologies shown by the Vermont state legislature. In June 2017 it approved a study to assess how blockchain tech might affect the state's job market, while a 2016 law made it possible to use blockchain data in court as admissible evidence.