U.S. Virginia Bill Proposes Crypto & Blockchain Study Group

Virginia state lawmakers have proposed the establishment of a work group to conduct research on blockchain technology, digital asset mining, and cryptocurrency. The proposal, known as Senate Bill No. 339 (SB339), was introduced by the Senate Committee on Commerce and Labor on February 5. If passed, the bill would authorize the Bureau of the Financial Institutions of the State Corporation Commission to form a work group with the aim of studying and providing recommendations on various aspects of the crypto industry.

According to the bill, the work group would consist of 13 members, including 5 Senators, 5 Delegates from the House of Delegates, 2 blockchain experts appointed by the Bureau, and 1 member from the local government. All non-legislative members must be residents of Virginia. The work group is expected to convene throughout 2024 and submit a summary report to the Governor and General Assembly no later than January 1, 2025.

This proposed bill, SB339, serves as an amendment to the original version introduced by Senator Saddam Azlan Salim in January. Salim’s initial version included regulations on digital asset mining, transactions, and tax treatment. It aimed to exempt digital mining operators from money transmitter licenses and digital asset issuers from securities registration requirements. The bill aimed to promote the use of cryptocurrencies for everyday transactions by offering tax benefits, such as allowing individuals to exclude up to $200 per transaction from their net capital gains for tax purposes.

The substitute amendment to the bill introduced by the Senate Committee on Commerce and Labor would replace Salim’s version and instead establish the work group to study the crypto industry. The amendment effectively terminates Salim’s proposed regulations in favor of a comprehensive research approach.

A recent study by CoinLedger ranked Florida as the “best state” for cryptocurrency taxes in the United States, followed by Texas and Wyoming. These states offer favorable conditions for crypto businesses, including 0% state income tax and crypto-friendly policies. Unfortunately, Virginia did not make it into the top five states for crypto taxation.

With this proposed legislation, Virginia aims to gain a better understanding of the potential benefits and challenges posed by blockchain technology, digital asset mining, and cryptocurrencies. By convening a dedicated work group, the state hopes to make informed decisions about the future of crypto regulation and taxation.