The two recently established commissions in the fields of blockchain and artificial intelligence (AI) in Virginia could receive a yearly fund of $39,240 from 2025.
Focusing On Crypto And AI
The state of Virginia is making significant strides in embracing the realms of cryptocurrency and artificial intelligence (AI) through proposed legislation and budget allocations. The Senate Finance and Appropriations Committee’s General Government Subcommittee recently unveiled a proposal allocating over $23.6 million for various legislative departments, focusing on advancing the understanding and regulation of blockchain technology and crypto, as well as the responsible development of artificial intelligence.
Allocation Breakdown
Out of this substantial budget, the newly established Blockchain and Cryptocurrency Commission is set to receive a proposed general fund of $17,192 for the fiscal years 2025 and 2026. Tasked with conducting studies, making recommendations, and promoting the expansion of blockchain technology and cryptocurrency within the state, this commission comprises 15 members, including both legislative and non-legislative representatives.
Simultaneously, the Artificial Intelligence Commission, aimed at formulating and maintaining policies to regulate the use of artificial intelligence and prevent illicit activities, is allocated $22,048 for the same period.
Legislative Initiatives
The legislative journey towards bolstering Virginia's crypto and AI ecosystems started with the introduction of Senate Bill No. 339 by Senator Saddam Azlan Salim on January 9. This bill proposes exemptions for digital asset miners from the obligation to obtain money transmitter licenses, effectively lowering entry barriers for individuals and businesses in the mining sector. Additionally, it prohibits discrimination against miners in industrial zones, ensuring fair treatment and conducive operational environments.
Moreover, the bill addresses the classification of digital assets concerning securities laws, outlining specific conditions under which issuers and sellers would be exempted from securities registration requirements.
Tax Incentives
Sources suggest that the proposed legislation also introduces tax benefits to incentivize using cryptocurrencies for everyday transactions. Individuals may exclude up to $200 per transaction from their net capital gains for tax purposes, particularly for gains derived from utilizing digital assets to purchase goods or services. This move aligns with efforts to mainstream cryptocurrency adoption and integration into traditional financial frameworks.
By establishing dedicated commissions, proposing favorable legislative amendments, and introducing tax incentives, the state of Virginia aims to create an environment conducive to the growth and sustainability of crypto and AI.
Disclaimer: This article is provided for informational purposes only. It is not offered or intended to be used as legal, tax, investment, financial, or other advice.
