Virginia Senate Proposes Funding for Blockchain and Cryptocurrency Commission

The Virginia Senate Committee Recommends Annual Allocation to Support Two Commissions Focusing on AI and Cryptocurrency

Virginia Senate Committee suggests yearly funding for new AI and Crypto commissions.

Last updated: February 19, 2024 02:34 EST | 2 min read

Source: Midjourney

A Virginia Senate Committee has recently recommended an annual combined fund allocation of $39,240 to support two newly established commissions focused on artificial intelligence (AI) and cryptocurrency. This proposal, presented by a Subcommittee of Virginia’s Senate Finance and Appropriations Committee on February 18, includes a total allocation of over $23.6 million to various legislative departments.

Blockchain and Crypto Commission Set to Receive $17,000

The Blockchain and Cryptocurrency Commission, formed in January 2024, will receive a general fund allocation of $17,192 over the specified two-year period. This commission’s primary responsibility is to study blockchain technology and cryptocurrencies, provide recommendations, and foster their growth within the state. It will consist of 15 members, including seven legislative and eight non-legislative members, who will be appointed within 45 days of the act’s effective date.

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Similarly, the Artificial Intelligence Commission, currently under review by the Committee on Communications, Technology, and Innovation, has been recommended funding of $22,048 for the same two-year duration. The objective of this commission is to develop and maintain policies that regulate the use of AI to prevent unlawful activities and ensure ethical implementation.

The legislation to establish the Blockchain and Cryptocurrency Commission was introduced on January 9 and received unanimous approval from the Senate on February 1.

Virginia’s Progressive Stance on Crypto Legislation

Virginia has shown proactive efforts in creating legislative bodies dedicated to fostering the growth of the crypto and AI industries. In addition to these commissions, the state recently introduced crypto-mining legislation that aims to provide favorable conditions for individuals and businesses involved in mining activities.

Senate Bill No. 339, proposed by Senator Saddam Azlan Salim, seeks to exempt miners from obtaining money transmitter licenses and prohibits mining-specific ordinances in industrial zones. The bill clarifies that individuals engaged in home digital asset mining or digital asset mining businesses are not required to obtain licenses under the specified chapter. However, companies offering mining or staking services must file a notice to qualify for the exemption.

Furthermore, the legislation proposes allowing individuals to exclude up to $200 per transaction from their net capital gains for tax purposes when using digital assets for purchasing goods or services. This provision incentivizes the use of cryptocurrencies for everyday transactions by offering tax benefits.

Additionally, police officers and other state employees in Virginia’s Fairfax County will potentially benefit from Bitcoin dividends thanks to a new $40 million crypto venture fund by digital asset management firm Morgan Creek Digital. This fund is backed by two separate pension funds managing a total of USD 1.2 billion in assets for the county’s police force and other employees.

• Q&A Content:

1. Q: What is the purpose of the Blockchain and Cryptocurrency Commission?
   • A: The commission’s primary responsibility is to study blockchain technology and cryptocurrencies, provide recommendations, and foster their growth within the state of Virginia.
2. Q: How many members will be part of the Blockchain and Cryptocurrency Commission?
   • A: The commission will consist of 15 members, including seven legislative and eight non-legislative members.
3. Q: What is the proposed funding for the Artificial Intelligence Commission?
   • A: The Artificial Intelligence Commission has been recommended funding of $22,048 for a two-year duration.
4. Q: What is the purpose of the crypto-mining legislation introduced in Virginia?
   • A: The legislation aims to provide favorable conditions for individuals and businesses involved in mining activities, such as exempting miners from obtaining money transmitter licenses and prohibiting mining-specific ordinances in industrial zones.
5. Q: How does the legislation incentivize the use of cryptocurrencies for everyday transactions?
   • A: The legislation proposes allowing individuals to exclude up to $200 per transaction from their net capital gains for tax purposes when using digital assets for purchasing goods or services.

References: 1. Virginia Senate Committee Meeting Presentations 2. Crypto Mining Legislation in Virginia 3. Crypto Venture Fund by Morgan Creek Digital 4. Bakkt 5. Coinbase

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Article written by Ruholamin Haqshanas

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