The proposed bill H.370, known as the Cryptocurrency Public Protection Act, aims to establish regulatory measures to protect Vermonters from potential risks associated with cryptocurrency transactions and mining facilities. The bill outlines several key findings regarding the nature of cryptocurrency, including its lack of legal tender status, absence of government backing, and the potential for irreversible transactions that could lead to significant financial losses. The intent of the act is to safeguard public funds, protect consumers from fraud, and uphold the legitimacy of the U.S. dollar.

To implement these protections, the bill includes provisions that prohibit investments in cryptocurrency by state pension funds and other state funds, with a divestment plan required if any holdings are found by July 1, 2025. Additionally, the Commissioner of Financial Regulation is tasked with developing a regulatory framework to prevent cryptocurrency-related fraud, while the Public Utility Commission will investigate the siting of cryptocurrency mining facilities to ensure compliance with environmental policies and to establish appropriate utility rates. The act is set to take effect on July 1, 2025.