Vermont legislates cash limits and fee caps for virtual-currency kiosks

On March 20, 2025, the Vermont State Legislature introduced Senate Bill 129, a legislative measure aimed at regulating virtual currency transactions conducted through money transmission kiosks. This bill seeks to address growing concerns about consumer protection and financial transparency in the rapidly evolving digital currency landscape.

The primary provisions of Senate Bill 129 include a daily cash transaction limit of $5,000 for individual customers at virtual currency kiosks. This limit applies to customers who have completed at least two transactions with the operator, ensuring that only established users can engage in higher-value exchanges. Additionally, the bill imposes a cap on fees associated with these transactions, restricting them to either $5 or 15% of the U.S. dollar equivalent of the virtual currency involved, whichever is greater. This fee structure aims to prevent excessive charges that could exploit consumers unfamiliar with the complexities of virtual currency trading.

The introduction of this bill has sparked notable discussions among lawmakers and stakeholders. Proponents argue that these regulations are essential for protecting consumers from potential fraud and ensuring fair practices in an industry that has seen significant volatility and risk. Critics, however, express concerns that such limitations could stifle innovation and deter businesses from operating in Vermont, potentially pushing transactions to less regulated environments.

The implications of Senate Bill 129 extend beyond consumer protection. As virtual currencies gain traction, the bill reflects a broader trend of state-level regulatory efforts to establish frameworks that balance innovation with consumer safety. Experts suggest that if passed, this legislation could position Vermont as a leader in responsible virtual currency regulation, potentially attracting businesses that prioritize compliance and ethical practices.

In conclusion, Senate Bill 129 represents a significant step towards regulating virtual currency transactions in Vermont. As discussions continue, the outcome of this bill could shape the future of digital currency operations in the state, influencing both consumer experiences and the business landscape. Lawmakers will need to navigate the delicate balance between fostering innovation and ensuring consumer protection as they consider the bill's provisions and potential impacts.