Virginia Senate Passes Blockchain Bill To Foster Crypto Adoption In The State

The Virginia Senate has passed a bill that aims to promote the use of blockchain technology and foster the adoption of cryptocurrencies in the state. The bill, SB 563, was introduced by Senator David Suetterlein and co-sponsored by Senator Siobhan Dunnavant, both Republicans.

What is SB 563 and what does it do?

SB 563 is a bill that amends the Virginia Uniform Electronic Transactions Act (UETA) to include blockchain technology and smart contracts as valid forms of electronic records and signatures. The bill also provides legal recognition and enforceability to transactions involving cryptocurrencies and other digital assets.

The bill defines blockchain as “a cryptographically secured, chronological, and decentralized ledger or database”, and smart contract as “a contract that is stored as an electronic record which is verified by the use of a blockchain”. The bill also defines digital asset as “a representation of economic, proprietary, or access rights that is stored in a computer-readable format, and includes a digital consumer asset, digital security, and virtual currency”.

The bill states that a record or signature secured through blockchain technology is considered to be in an electronic form and to be an electronic record and signature for the purposes of the UETA. The bill also states that a smart contract is enforceable in the same manner as any other contract under the law, and that a person who uses a blockchain to secure information owns the rights to that information.

The bill also clarifies that a person who accepts or transacts with a digital asset is not required to pay taxes or fees to the state or any local government for the use of the digital asset, unless otherwise required by law.

Why is SB 563 important for Virginia and the crypto industry?

SB 563 is an important bill for Virginia and the crypto industry because it provides a clear and supportive legal framework for the use of blockchain technology and digital assets in the state. The bill aims to encourage innovation and entrepreneurship in the blockchain and crypto space, as well as to protect the rights and interests of consumers and businesses who engage in transactions involving digital assets.

The bill also aligns Virginia with other states that have passed similar legislation, such as Wyoming, Nevada, Arizona, and Tennessee. By doing so, the bill helps to create a more harmonized and consistent regulatory environment for the blockchain and crypto industry across the US.

The bill also reflects the growing interest and adoption of blockchain technology and cryptocurrencies in Virginia, especially among the younger generation. According to a recent survey by Finder, Virginia ranks as the 8th most crypto-friendly state in the US, with 13.4% of its residents owning some form of cryptocurrency.

What are the next steps for SB 563?

SB 563 has passed the Virginia Senate with a unanimous vote of 39-0 on February 5, 2024. The bill now moves to the House of Delegates, where it will be assigned to a committee for further review and debate. If the bill passes the House, it will then be sent to the Governor for approval or veto.

The bill has received positive feedback and support from various stakeholders, including the Virginia Blockchain Business Association, the Chamber of Digital Commerce, and the Coin Center. The bill’s sponsors and supporters hope that the bill will become law by July 1, 2024, the effective date of the bill.