Virginia’s $39K Yearly Fund for Crypto and AI Commissions

The Virginia Senate Committee has recommended allocating a combined fund of $39,240 per year for two newly established Commissions on artificial intelligence (AI) and cryptocurrency. A proposal from a Subcommittee of Virginia’s Senate Finance and Appropriations Committee has allocated over $23.6 million for various legislative departments. The Blockchain and Cryptocurrency Commission, formed in January 2024, received a proposed general fund of $17,192 for 2025 and 2026. The Artificial Intelligence Commission, currently referred to the Committee on Communications, Technology and Innovation, was allotted $22,048 for the same period.

The Blockchain and Cryptocurrency Commission has the responsibility of studying and providing recommendations on blockchain technology and cryptocurrency, as well as promoting their growth within the state. It consists of 15 members, including seven legislative and eight nonlegislative members who will be appointed within 45 days after the act becomes effective. Similarly, the Artificial Intelligence Commission aims to develop and implement policies to regulate the use of AI and prevent illegal activities.

The bill to establish the blockchain and cryptocurrency commission was introduced on January 9 and was unanimously passed by the Senate on February 1. Virginia has also introduced legislation regarding cryptocurrency mining that favors individuals and businesses. Senate Bill No. 339, proposed by Senator Saddam Azlan Salim, aims to exempt miners from obtaining money transmitter licenses and prohibits mining-specific ordinances in industrial zones.

Under the proposed legislation, individuals and businesses offering mining or staking services would not be classified as a “financial investment” but would need to file a notice to qualify for the exemption. The bill also includes tax benefits, allowing individuals to exclude up to $200 per transaction from their net capital gains when using digital assets for purchasing goods or services. This incentive encourages the use of cryptocurrencies for everyday transactions.

Virginia is taking steps to support and regulate the development of blockchain technology, cryptocurrency, and artificial intelligence. The establishment of dedicated commissions and favorable legislation for crypto miners reflects the state’s commitment to fostering innovation in these emerging fields.

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