House committee reviews strike-all amendment to H.137 covering crypto kiosks, payroll exemptions and mortgage rate buy-downs

The House Committee on Commerce & Economic Development on Feb. 12 reviewed a draft strike‑all amendment to H.137, an omnibus bill addressing insurance product regulation, money‑transmission exemptions for small payroll processors, anti‑discrimination language for affordable housing, and a change to permit discount points on second mortgages.

The draft amendment was presented by Maria Royal of Legislative Council as a complete substitute for H.137. Royal told the committee the draft consolidates prior changes and highlights substantive edits, including new exemptions for payroll processors (section 15), a permitted‑charges change allowing discount points on certain loans (section 16), and movement of affordable‑housing nondiscrimination language into the state's unfair trade practices provisions.

The bill's legal risks for cryptocurrency vending machines — described in testimony as "virtual currency kiosks" — were flagged early in the hearing by Todd Dalos, assistant attorney general. Dalos said the kiosks operate in an "unregulated marketplace" and "present a tremendous risk to Vermonters," noting the attorney general's office has received numerous reports of crypto‑related fraud. He said an outright ban could raise…