
Summary
- This month in state digital asset policy, Virginia advanced legislation to establish a commission on blockchain and cryptocurrency.
- Wyoming took an important step toward addressing legal challenges for DAOs.
- Louisiana’s virtual currency business activity licensing program awaits review in the Senate Committee on Commerce, Consumer Protection, and International Affairs.
- Illinois is exploring a licensing framework for digital asset business activity through the introduction of SB 3666 in the State Senate.
- Read our state digital asset policy news roundup and share our thread on X and LinkedIn.Â
This month in state digital asset policy, as states grapple with the question of how to best regulate digital assets on behalf of their residents, February saw key developments in Virginia, Wyoming, Louisiana, and Illinois. From Virginia’s proactive steps towards establishing a Blockchain and Cryptocurrency Commission to Wyoming’s innovative approach to addressing legal challenges faced by DAOs, the landscape is dynamic and diverse. Louisiana contemplates the future of its virtual currency business licensing program, while Illinois navigates the intricacies of establishing its own licensing regime.Â
Virginia’s Blockchain Push
Virginia’s State Senate has taken a significant step towards embracing blockchain technology and crypto by passing Senate Bill 439 at the beginning of this month. The bill, which recently cleared the House Appropriations Committee, aims to establish the Blockchain and Cryptocurrency Commission within the legislative branch of the state department.
The bill is now awaiting approval from the Virginia House. If passed by the House and signed by Governor Glenn Youngkin, SB 439 wouldofficially establish the Blockchain and Cryptocurrency Commission. The Blockchain and Cryptocurrency Commission would study and make recommendations regarding blockchain technology, crypto, and digital assets. The Virginia Subcommittee on General Government has allocated $17,192 per year to cover expenses related to the commission’s operations for both 2025 and 2026.
SB 439 aligns with similar bills under consideration in other states like New York and Massachusetts. This national trend showcases the growing recognition of blockchain technology and crypto. Fostering better public and private collaboration will be critical to increasing awareness of the benefits and responsible utilization of blockchain technology. Ultimately, this legislative move reflects Virginia’s commitment to integrating blockchain technology and digital assets into the state’s economic landscape.
Wyoming’s Framework for DAOs
Wyoming continues to build its reputation for thoughtful crypto and blockchain policy, with its State Senate recently passing an important bill focused on DAOs. Senate File 50 aims to address the legal challenges faced by DAOs in Wyoming by proposing the creation of a new legal structure tailored specifically for their decentralized operations.
Many existing legal structures are either incompatible or lack sufficient clarity for DAOs to operate effectively. The proposed Senate File 50 seeks to fill this gap by introducing a new category within the existing Wyoming Unincorporated Nonprofit Association (UNA) statute. This new category is designed to accommodate the unique decentralized nature of DAOs, providing them with a legal framework that aligns with their operational structure.
CCI supported Senate File 50 in a letter addressed to the members of the legislature. CCI commends Wyoming for taking a forward leaning approach to addressing a major challenge faced by the digital asset sector. While the bill has successfully passed the State Senate, it still awaits approval from the State House. The outcome of this legislative process will play a significant role in determining the legal landscape for DAOs in Wyoming.
Louisiana’s Virtual Asset Licensing Dilemma
Louisiana is currently deliberating the fate of its virtual currency business activity licensing program. SB 28 was referred to the Committee on Commerce, Consumer Protection, and International Affairs for review. Should this bill receive approval, it would effectively eliminate the sunset clause attached to the licensing program. CCI previously engaged on legislation impacting Louisiana’s digital asset regulations. Last year, CCI expressed concerns with Senate Bill 185, which updated the state’s digital asset regulatory framework. CCI suggested specific amendments to the bill, including addressing certain timelines and surety bond requirements.
Illinois’ Digital Asset Landscape
Illinois is currently exploring the possibility of its own licensing regime for digital asset business activity, with the introduction of SB 3666 in the State Senate earlier this month. State-based regulatory frameworks for digital assets can be effective. However, CCI has a number of concerns with this bill. CCI weighed in on last year’s version of the Fintech-Digital Asset Bill.Â
In a comment letter, CCI proposed amendments for regulatory clarity, advocating for a clear definition to enhance communication between IDFPR and potential licensees. CCI also raised concerns about the complex reporting criteria, short turnaround times, surety bond obligations, and unclear capital requirements, which could have been significant barriers for smaller digital asset startups in the state. CCI looks forward to continued collaboration with state legislatures to foster innovation in digital assets and blockchain technology across the country.Â
Ultimately, as the digital asset landscape continues to evolve across the United States, February’s state crypto policy developments in Virginia, Wyoming, Louisiana, and Illinois showcase the critical role state governments play in shaping the future of these technologies. Each state’s approach reflects a growing awareness and willingness to engage with the complexities of digital assets. These initiatives highlight the importance of collaboration between the public and private sectors, as well as the need for clear, thoughtful legislation that supports the growth of blockchain and digital assets while safeguarding stakeholders.
Check out our January state digital asset policy update here.