In a move to explore blockchain technology, digital asset mining, and cryptocurrency, lawmakers in Virginia have introduced Senate Bill No. 339 (SB339) on Feb. 5, proposing the formation of a specialized work group.
SB339, presented by the Senate Committee on Commerce and Labor, seeks to empower the Bureau of the Financial Institutions of the State Corporation Commission to establish a work group dedicated to studying and providing recommendations on crypto-related matters. The group, comprising 13 individuals, will include senators, delegates from the House of Delegates, blockchain experts appointed by the bureau, and a representative from local government, all residents of Virginia.
The work group is scheduled to convene throughout 2024 and deliver its findings by Nov. 1, 2024, presenting a summary report to the Governor and the Virginia General Assembly by the first day of 2025.
Originally proposed by Senator Saddam Azlan Salim in January, SB339 underwent a transformation, shifting from a regulatory framework for digital asset mining and transactions to the creation of the crypto-focused work group.
Salim’s initial bill aimed to regulate digital asset mining and transactions while offering tax benefits to encourage cryptocurrency usage in everyday transactions. These incentives included exemptions for digital mining operators from money transmitter licenses and digital asset issuers from securities registration requirements. Moreover, individuals could exclude up to $200 per transaction from their net capital gains for tax purposes.
CoinLedger’s recent study ranks Florida as the top state for cryptocurrency taxes in the United States, followed by Texas and Wyoming, which offer favorable tax policies and regulatory environments for crypto activities. Virginia did not rank in the top five.
Virginia’s proposed work group signifies a proactive approach towards understanding and potentially regulating blockchain technology and cryptocurrency within the state, aligning with broader efforts nationwide to navigate the evolving landscape of digital assets.
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