Regulation News

Virginia Proposes $39,000 Annual Budget for Cryptocurrency and Artificial Intelligence Commissions

This proposal allocates a public fund of $22,048 and $17,192 annually to the newly established Artificial Intelligence and Cryptocurrency Commissions in the state of Virginia.

A Virginia Senate committee has recommended an annual budget allocation of $39,240 for two newly established commissions in the fields of Artificial Intelligence (AI) and cryptocurrencies. A proposal by the General Government Subcommittee of the Senate Finance and Appropriations Committee on February 18 allocated over $23.6 million across various legislative sectors, with the Blockchain and Cryptocurrency Commission, established in January 2024, receiving a proposed general fund of $17,192 for 2025 and 2026.

The Artificial Intelligence Commission, currently called the Communications, Technology, and Innovation Committee, has been allocated $22,048 for the same period. The Blockchain and Cryptocurrency Commission is tasked with studying and providing recommendations for blockchain and cryptographic technology and promoting its expansion within the state. This council will consist of 15 members, including seven legislative members and eight non-legislative members, appointed no later than 45 days after the enactment of this law. Similarly, the goal of the Artificial Intelligence Commission is to develop and maintain policies that ultimately restrict the use of AI to prevent illegal activities.

The bill to amend Virginia law and establish the Blockchain and Cryptocurrency Commission was introduced on January 9, unanimously approved by the Senate on February 1. Virginia, in addition to creating new legal commissions around cryptocurrency and AI ecosystems, has recently introduced crypto mining laws favorable to individuals and businesses. Senator Sadam Aslan Slim proposed Senate Bill No. 339 on January 9, aiming to exempt miners from obtaining money transmission licenses. This bill also prohibits industrial areas from enforcing specific mining regulations, while companies offering mining or staking services cannot be classified as financial investments under this bill, they must submit a notice to qualify for exemption.

The law suggests that individuals can deduct up to $200 per transaction from their net capital gains for tax purposes. This exemption applies to benefits derived from using digital assets for purchasing goods or services, thereby encouraging the use of digital currencies for everyday transactions through tax benefits.

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