KEY POINTS
- Virginia's Blockchain and Crypto Commission was established last month
- A Virginia senator recently introduced a bill that aims to protect digital assets mining rights
- The subcommittee also proposed annual funding of $22,048 for its AI Commission
The Virginia Subcommittee on General Government of the Senate Finance and Appropriations Committee on Sunday proposed more than $17,000 in yearly funding for the state's newly formed Blockchain and Cryptocurrency Commission.
Under the proposal, the commission will receive $17,192 in annual funding for 2025 and 2026, as the state moves to embrace cryptocurrency transactions. The funds will be used to cover meeting costs for the 15-member commission, including their travel expenses, as per CoinDesk.
The commission, which was introduced earlier last month under the Virginia Senate Bill (SB) 439, will study and draw up recommendations "related to blockchain technology and cryptocurrency." It is also expected to foster "the appropriate expansion of blockchain technology and the cryptocurrency industry in the Commonwealth." The state's senate unanimously passed the bill on Feb. 1, marking another milestone in Virginia's move toward business-friendly crypto regulations.
Virginia has not yet reached the level of some of the most "crypto-friendly" states in the U.S. such as Colorado or Wyoming, but it has steadily been working towards supporting the state's cryptocurrency ecosystem.
Last month, Democratic Sen. Saddam Azlan Salim introduced legislation that aims to protect digital assets mining rights.
If it is signed into law, Senate Bill No. 339 will exempt businesses and individuals in digital mining activities from obtaining money transmitter licenses and will prohibit industrial zones from banning digital assets mining.
The bill also states that companies that offer mining or staking services – after filing a notice of intent to qualify for an exemption – cannot be classified as a "financial investment."
In 2022, the state's Senate unanimously approved a bill amendment request that sought to allow traditional banks operating in the Commonwealth of Virginia to provide digital currency custody services.
Under the bill, an eligible Virginia bank "may provide its customers with virtual currency custody services so long as the bank has 26 adequate protocols in place to effectively manage risks and comply with applicable laws."
There are three specific requirements under the bill for banks to abide by: establish risk management systems, have enough insurance coverage for clients, and create an oversight program to address potential risks associated with crypto and other digital currencies.
Meanwhile, the state has also proposed annual funding of $22,048 for the Artificial Intelligence Commission as Virginia looks to move forward in the AI space.
