A Virginia senate committee has proposed a combined fund allocation of $39,240 annually for two newly established commissions in the fields of artificial intelligence and cryptocurrency. The Senate Finance and Appropriations Committee’s General Government Subcommittee’s proposal dated February 18 allocated a budget of over $23.6 million for various legislative departments.
Cryptocurrency Regulation in Virginia
The Blockchain and Cryptocurrency Commission, established in January 2024, received a general fund proposal of $17,192 for the years 2025 and 2026. The Artificial Intelligence Commission, currently called the Communications, Technology, and Innovation Committee, was allocated $22,048 for the same period.
The Blockchain and Cryptocurrency Commission is tasked with conducting studies and making recommendations on blockchain technology and crypto, as well as promoting expansion within the state. The commission will consist of 15 members, including seven legislative and eight non-legislative members, to be appointed within 45 days of the enactment of this law.
Similarly, the Artificial Intelligence Commission aims to develop and maintain policies to limit the use of artificial intelligence to avoid illegal activities. The bill proposing amendments to Virginia Law and the establishment of the blockchain and cryptocurrency commission was introduced on January 9. The Senate unanimously approved it on February 1.
Key Details in the Bill
In addition to establishing new legislative commissions around the crypto and artificial intelligence ecosystems, Virginia has recently introduced cryptocurrency mining legislation to support individuals and businesses. Senator Saddam Azlan Salim proposed Senate Bill 339 on January 9, aiming to exempt miners from obtaining money transmitter licenses. The bill also prohibits industrial zones from implementing mining-specific regulations:
“No license under this section shall be required for any person engaged in the business of crypto asset mining activities, as defined in terms 38 15.2-2288.9.”
Companies offering mining or staking services cannot be classified as financial investments under the bill, but they must file a notice to qualify for the exemption. The legislation proposes exempting individuals from net capital gains for tax purposes up to $200 per transaction.
This exemption is valid for gains derived from using crypto assets to purchase goods or services. Consequently, the bill encourages the use of cryptocurrencies for daily transactions through tax advantages.
