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The State of Virginia Proposes to Allocate Funds for Crypto and AI Commissions

The U.S. crypto regulation in the works: Virginia issues a funding proposal

A recent proposal by a Virginia senate committee outlines an annual allocation of $39,240 to support cryptocurrency and Artificial Intelligence sectors. This initiative divides the funding between two newly established commissions: $22,048 for the Artificial Intelligence Commission and $17,192 for the Blockchain and Cryptocurrency Commission for the fiscal years 2025 and 2026.

The proposal emerged from the Subcommittee on General Government of the Senate Finance and Appropriations Committee on February 18, forming a part of a broader allocation exceeding $23.6 million intended for various legislative departments. Among these, the Blockchain and Cryptocurrency Commission, inaugurated in January 2024, stands to benefit as a focal point for studying, recommending, and fostering the expansion of blockchain and cryptocurrency within Virginia.

Simultaneously, the Artificial Intelligence Commission, formerly known as the Committee on Communications, Technology, and Innovation, is set to receive its share of funding, earmarked for developing policies aimed at curbing unlawful AI activities.

Impact and legislation on crypto and AI in Virginia

Following the establishment of commissions for artificial intelligence and cryptocurrency, Virginia is further cementing its position in the tech landscape with progressive legislation. The Blockchain and Cryptocurrency Commission, tasked with the study and recommendation of blockchain technology and cryptocurrencies, aims to catalyze growth within the state. This commission, set to comprise 15 members.

In parallel, legislative strides in crypto mining position Virginia as a haven for digital asset enthusiasts and businesses. Senator Saddam Azlan Salim's introduction of Senate Bill No. 339 on January 9 marks a significant move towards deregulation. This bill, proposing exemptions for miners from money transmitter licenses and preventing industrial zones from enacting mining-specific ordinances. Specifically, the legislation states:

"No license under this chapter shall be required of any person engaging in-home digital asset mining, digital asset mining, or digital asset mining business activities, as those terms are defined in § 15.2-2288.9."

The bill introduces a tax incentive for the use of digital assets in everyday transactions. Individuals can now exclude up to $200 per transaction from their net capital gains, encouraging the adoption of cryptocurrencies for purchasing goods or services.