The Virginia State Senate has put forward Senate Bill No. 339, a legislative proposal aimed at regulating the mining and transactions of digital assets within the state. Spearheaded by the youngest member of the Senate, 34-year-old Senator Saddam Azlan Salim, the bill is currently under discussion in the Senate.
Virginia State Senate Provides Exemptions for Digital Miners
Senate Bill No. 339 introduces key exemptions for individuals and businesses engaged in digital mining activities. Notably, it eliminates the requirement for obtaining money transmitter licenses for such entities. Moreover, the legislation prohibits discrimination against miners by industrial zones, barring them from imposing stricter noise ordinances or banning digital assets mining.
The proposed legislation also addresses the issue of securities registration for digital assets. Issuers and sellers of digital assets may be exempt from registration requirements under certain conditions. This includes the digital asset not being classified as an investment contract and the issuer or seller not marketing it as a financial investment. The bill emphasizes the importance of taking reasonable precautions to prevent buyers from viewing the digital asset as a financial investment.
Classification of Mining and Staking Services
The bill clarifies that companies providing mining or staking services should not be classified as a “financial investment.” However, these entities are required to file a notice to qualify for the exemption, ensuring regulatory compliance.
In a move to incentivize the use of cryptocurrencies for everyday transactions, the legislation proposes tax benefits. Effective from January 1, 2024, individuals can exclude up to $200 per transaction from their net capital gains for tax purposes. This exclusion specifically applies to gains derived from the use of digital assets in purchasing goods or services.
The fate of Senate Bill No. 339 now rests on the outcome of the Senate’s deliberations and, if passed, it will proceed to the House of Delegates for further consideration before potentially becoming law.