SB 339

Abstract

Joint Commission on Technology and Science analysis; blockchain, digital asset mining, and cryptocurrency; report. Directs the Joint Commission on Technology and Science to conduct an analysis of and make recommendations regarding the use of blockchain technology, digital asset mining, and cryptocurrency in the Commonwealth. The bill requires the Commission to submit its findings to the Chairmen of the House Committees on Appropriations and Communications, Technology and Innovation and the Senate Committees on Finance and Appropriations and General Laws and Technology no later than December 1, 2024.

Bureau of Financial Institutions to study blockchain technology, digital asset mining, and cryptocurrency; report. Directs the Bureau of Financial Institutions of the State Corporation Commission to convene a work group to study and make recommendations relating to blockchain technology, digital asset mining, and cryptocurrency. The bill requires the members of such work group to include five members of the House of Delegates, five members of the Senate, and three nonlegislative members appointed by the Bureau. The bill requires the Bureau to submit to the Governor and the General Assembly an executive summary and a report of the work group's findings and recommendations no later than the first day of the 2025 Regular Session of the General Assembly.

Digital asset mining; holding, use, and transfer of digital assets; securities exemption; tax exemption. Exempts any person engaging in home digital asset mining, digital asset mining, or digital asset mining business activities, as those terms are defined in the bill, from the requirement to obtain a money transmitter license. The bill exempts issuers and sellers of digital assets from securities registration requirements if certain conditions are met. Under the bill, no locality's industrial zone may prohibit the use of such area for digital asset mining or digital asset mining business activities and no local sound ordinance may be more restrictive for digital asset mining or digital asset mining business activities than the current industrial zone noise ordinance of the locality. Additionally, the bill provides that, for taxable years beginning on and after January 1, 2024, up to $200 per transaction of any net capital gain from exchanges made after January 1, 2024, for one legal tender to another legal tender shall be subtracted from taxable income computations. The bill provides that any person in the Commonwealth may use or transfer digital assets to purchase legal goods or services or transfer or exchange digital assets using a blockchain protocol and that no person engaging in digital asset mining, digital asset mining business activities, or providing digital asset mining or staking services for another person or operating a node or series of nodes on a blockchain network shall be subject to liability for merely validating a transaction. The bill also directs to the Bureau of Financial Institutions of the State Corporation Commission to convene a work group for the purpose of studying and making recommendations related to blockchain technology, digital asset mining, and cryptocurrency activity in the Commonwealth.