United States lawmakers in the state of Virginia have proposed convening a work group to research blockchain technology, digital asset mining and cryptocurrency. The proposition was introduced as a Senate bill on Feb. 5.
Senate Bill No. 339 (SB339), which was proposed by the Senate Committee on Commerce and Labor, will authorize the Bureau of the Financial Institutions of the State Corporation Commission to create a work group “for the purpose of studying and making recommendations” on all things crypto.
According to the bill, the group shall consist of 13 individuals: five senators, five delegates from the House of Delegates, two experts on blockchain appointed by the bureau, and one member of the local government. All the nonlegislative members of the work group must be residing in Virginia.
The group will meet throughout 2024 and conclude its work by Nov. 1, presenting a summary report to the Governor and the Virginia General Assembly “no later than the first day of 2025.”
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The current draft of SB339 comes as an “amendment in the nature of a substitute” to the bill’s initial version, introduced to the Senate by Senator Saddam Azlan Salim in January.
Salim’s initiative contained regulations for the mining and transactions of digital assets and their treatment under tax laws. It would have exempted digital mining operators from obtaining money transmitter licenses and digital assets issuers from securities registration requirements. The legislation would also incentivize using cryptocurrencies for everyday transactions by offering tax benefits. For example, individuals could exclude up to $200 per transaction from their net capital gains for tax purposes.
The substitute amendment would terminate Salim’s version in exchange for creating the work group on crypto.
According to a recent study from CoinLedger, Florida has been named the “best state” for cryptocurrency taxes in the United States. It was followed by Texas and Wyoming, which have a 0% state income tax, crypto-friendly policies and allowances for banks to serve as crypto custodians. Virginia didn’t make it into the top five.
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