Vermont state legislator, Alison Clarkson, has introduced a bill making several proposals for cryptocurrencies and companies that issue crypto assets.
Amongst other things, the bill is set to provide one of the world’s first formal legal frameworks for business models that require a token to access its products and services.. That could ultimately open ICOs up to investment from a wider market, including institutional.
Cryptocurrencies To Achieve Legal Tender Status?
Amongst the proposals is one to classify certain firms as “digital currency limited liability companies.” Another envisages companies paying a transaction tax equivalent to $0.01 for each token issue or trade.
These companies would then be exempt from other taxes. Most interestingly of all, perhaps, is that companies would pay those taxes in their own token.
The bill also calls for research to be conducted into the “risks and opportunities” of using blockchain technology and cryptocurrencies within the state government.
If the legislation passes, it will likely go a long way to giving cryptocurrencies legal tender status. The definition of legal tender varies from one jurisdiction to the next but generally implies a currency can be used to pay fines and taxes and to settle debts.
At this stage, all that has happened is that a bill has been put forward for discussion – there is likely a long way to go before any laws are changed. The fact, however, that it was introduced in the first place suggests that there is increasing awareness amongst legislators for the need for some kind of statutory accommodation of cryptocurrencies.