Earlier this week Senator Alison Clarkson (Dem) from Vermont has proposed legislation that outlines a use case for government-based cryptocurrency solutions for the state.
The Democrat, Alison Clarkson, recently introduced a bill that talks about various government statutes as well as the use of cryptocurrencies. The proposed legislation will be seen by the state’s (CED) Committee on Economic Development, Housing & General Affairs. The bill covers the use of digital assets tethered to blockchains and various cryptocurrency solutions.
Subchapter twelve discusses digital currency LLC’s which include physical presence, taxation, as well as exemptions for the entities. Within this section, the company must reside within the state of Vermont and can pay its taxes using a cryptocurrency transaction.
The S.269 proposal explains:
A digital currency limited liability company shall remit to the State in the form of its digital currency a transaction tax equivalent to $0.01, at the then current exchange rate for the currency with the U.S. dollar, per transaction for: each unit of currency mined or otherwise created; and each sale or other transfer of one or more units of currency.
Section 13 of the bill asks for research and a report concerning the “opportunities and risks” of adopting blockchain tech and cryptocurrency operations used within Vermont government. The study and report shall be reviewed by officials such as the Attorney General, the Sec. of State, the Commissioner of Financial Regulation, as well as members of the Vermont Law School.
Additionally, Clarkson’s proposal wants to a create a Summit in the state that in their words “explores opportunities that promote financial technology & economic development in the private sector, including in the areas of banking, insurance, retail and service businesses, and cryptocurrency providers and proponents.”
The state of Vermont has been friendly towards bitcoin and cryptocurrencies. Last May, the state added bitcoin as a ‘permissible investment’ and also defined the nature of cryptocurrency transmissions in Vermont’s code of law. The year prior to that the governor signed into law legislation that made records created on a public blockchain admissible within the state’s court system. Clarkson’s bill S.269 discusses many types of technologies tied to cryptocurrency adoption, such as the concept of forking as well as the use of nodes.