Virginia State Senator Advocates Bill Safeguarding Digital Asset Mining and Validation

Jimmy Aki
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Virginia State Senator Saddam Azlan Salim has proposed legislation to establish a robust regulatory framework governing digital assets mining and transactions.

Senate Bill No. 339 Addresses Mining, Securities, and Tax

On January 9, Senator Salim proposed Senate Bill No. 339 (SB 339) to foster a favorable environment for the digital assets industry in Virginia.

The proposed legislation addresses crucial aspects, including mining regulations, securities registration requirements, and tax treatment.

One key aspect of the bill involves exempting digital asset miners from money transmitter licenses. This exemption is designed to alleviate regulatory burdens, granting miners the liberty to operate without the need for money transmitter licenses, thereby fostering the industry’s expansion in the state.

Furthermore, the legislation incorporates a provision prohibiting industrial zones from restricting digital asset mining or enforcing noise ordinances stricter than those applicable to other industrial activities.

This measure aims to safeguard digital asset miners from discriminatory practices and ensure they receive fair treatment within industrial zones.

Another noteworthy policy seeks to make issuers and sellers of digital assets not liable to securities registration requirements, provided specific conditions are met.

These conditions ensure that the digital asset doesn’t qualify as an investment contract and that the issuer or seller takes reasonable precautions to prevent the initial buyer from viewing the asset as a financial investment.

In a bid to encourage the use of cryptocurrency in everyday transactions, SB 339 proposes tax benefits effective from January 1. Under this proposal, individuals can exclude up to $200 per transaction from their net capital gains for tax purposes when using cryptocurrency to purchase goods or services.

Senator Salim’s bill aligns with similar legislative endeavors in Arkansas, Nebraska, Indiana, and Missouri, all backed by the Satoshi Action Fund.

Satoshi Action Fund, a non-profit organization dedicated to educating policymakers about the benefits of Bitcoin (BTC) and crypto mining, has developed model legislation to protect the rights of crypto users and miners at the state level.

However, what sets SB 339 apart from bills introduced in other states is its innovative inclusion of a workgroup. This dedicated team includes representatives from state agencies, academic institutions, industry associations, and public interest groups.

They are tasked with studying and providing recommendations on blockchain technology, digital asset mining, and cryptocurrency activity within the Commonwealth.

In addition, their mandate encompasses exploring current and potential uses, assessing benefits and risks, and establishing regulatory frameworks, best practices, and standards.

SB 399 in the Deliberation Phase

The Virginia State Senate is currently in the process of deliberating the proposed legislation. If the legislation secures approval within the Senate, the next step involves its consideration in the House of Delegates.

Digital Mining
Source: FastDemocracy

After the legislation successfully passes through both chambers of the state legislature, it will proceed to the final stage of the legislative process.

The bill will be forwarded to the governor for review upon approval by the Senate and the House of Delegates. If the governor signs it into law, the proposed measures will officially become part of Virginia’s legal framework.

About Jimmy Aki PRO INVESTOR

Based in the UK, Jimmy is an economic researcher with outstanding hands-on and heads-on experience in Macroeconomic finance analysis, forecasting and planning. He has honed his skills having worked cross-continental as a finance analyst, which gives him inter-cultural experience. He currently has a strong passion for regulation and macroeconomic trends as it allows him peek under the global bonnet to see how the world works.