Governor of Vermont Phil Scott signs Bill Clearing way for Blockchain Companies
Governor of Vermont has signed a bill permitting for the creation of “blockchain-based limited liability companies,” public record show.
As reported in January that state lawmakers were weighing a measure, which at the time referred to “digital currency limited liability companies” and contained such language showing that such businesses are effectively working on a distributed blockchain network – would pay taxes to the state in cryptocurrency. As per the text, those businesses are described as “limited liability companies organized under this title for the purpose of operating a business that uses blockchain for a material portion of its business activities.”
The latest version of the text, as per LegiScan, show that the language related to taxation has been stripped out. However, it still contains sections regarding the limited liability companies and mandate for a “Fintech Summit” and subsequent research of backing up public records using the tech.
Among the requirements for setting up a blockchain-based company in Vermont, “specify whether the decentralized consensus ledger or database used or allowed by the BBLLC will be fully decentralized or partially decentralized and whether such ledger or database will be fully or partly public or private, including the extent of participants’ access to information and read and write permissions with respect to protocols.”
Mr. Phil Scott Governor of Vermont signed the bill on 30th May, LegiScan reveals.
The newly signed law further calls for a study due before 15th January of next year into the tech’s use in insurance and banking and how state authority can clear the way for such applications within the state economy.
The Text says:
“The Department of Financial Regulation shall review the potential application of blockchain technology to the provision of insurance and banking and consider areas for potential adoption and any necessary regulatory changes in Vermont.”