Get Full Government Meeting Transcripts, Videos, & Alerts Forever!
Get email alerts on the Blockchain Legal Framework topic
No spam. Unsubscribe anytime.
Senate panel pauses blockchain LLD bill for additional review after mixed testimony
Summary
Lawmakers carried SB 782, which would create a blockchain-based limited liability entity (LLD) with disclosure via public blockchain addresses, for further study and letters to the Virginia Bar Association and the State Corporation Commission following technical and liability concerns.
Senators heard hours of testimony on SB 782, legislation that would authorize a new limited liability entity tailored to decentralized autonomous organizations and blockchain governance structures. Sponsor Sen. Saleem said the LLD statute would avoid changing existing LLC code and would require transparency including a public blockchain address and SCC forms for filings; the bill’s effective date was set for Jan. 1, 2027 to give regulators time to prepare.
The Virginia Bar Association expressed opposition, saying the statutory framework is not ready and raises liability and accountability questions. Supporters from the Virginia Blockchain Council and private-sector witnesses said the bill was carefully drafted with technical amendments and that other states have adopted similar frameworks. The committee adopted several technical corrections, agreed to ask the Virginia Bar Association’s business-law section for a review, and to coordinate a study with the State Corporation Commission before advancing the bill further.
The committee did not vote the bill out today; instead it carried the measure for additional scrutiny and requested written feedback from the Bar and SCC on transparency, enforcement, and potential criminal-use risks.
