An act relating to cryptocurrency and protecting the public welfare
Impact
If passed, H0370 could significantly alter state laws regarding investments, particularly with public pension funds. The law prohibits the Vermont Pension Investment Commission from investing state retirement funds in cryptocurrency, thereby minimizing financial exposure to the high risks associated with these digital assets. Furthermore, it mandates a divestment plan if any such funds are discovered to have investments in cryptocurrency by July 1, 2025. This move would align state investment policies with a cautious approach toward digital currencies.
Summary
House Bill 0370, also known as the Cryptocurrency Public Protection Act, seeks to introduce regulatory frameworks to protect Vermonters from risks associated with cryptocurrency transactions and the establishment of cryptocurrency mining facilities within the state. The bill emphasizes that cryptocurrency is not considered legal tender and addresses the potential risks that accompany its volatility and lack of backing by government entities. By outlining the need for regulation, the bill aims to safeguard public funds and promote consumer protection against fraudulent activities related to cryptocurrency.
Contention
The act includes provisions for creating a regulatory framework designed to prevent theft and fraud linked to cryptocurrency while ensuring robust enforcement against criminal activities related to these transactions. Additionally, the Public Utility Commission is tasked with investigating the siting of cryptocurrency mining facilities to ensure compliance with the state's environmental policies. This provision may face scrutiny from stakeholders concerned about the potential negative environmental impact of such facilities, as well as the implications for utility rates that might arise from their operation.