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Committee reports substitute for HB 293 to the floor after debate over decentralized organizations
Summary
The committee reported HB 293, a bill to create a limited liability decentralized autonomous organization (LLD) framework, to the next stage on a 13–6 vote after supporters highlighted consumer protections and opponents, including the Virginia Bar Association, voiced continued opposition.
Delegate Helmer introduced a substitute to House Bill 293, which would create a limited liability decentralized autonomous organization (LLD) recognized as a distinct legal entity that operates through decentralized governance using blockchain technology and smart contracts. The substitute makes technical changes to align terminology and filing fees with Virginia's existing LLC framework and clarifies dissolution and automatic cancellation provisions.
The substitute, Helmer said, was intended to "protect consumers, attract new innovation, and to minimize the operational impact on the SCC," and reflected technical edits suggested by the State Corporation Commission. Helmer also acknowledged the American Bar Association remained opposed to the concept as presented.
Three witnesses spoke in favor during the committee hearing. Greg Leffel of the Virginia Blockchain Council said the council supports the bill. Helen Sharp of Americans for Prosperity also voiced support, and Kyler Hendrick, speaking for Cousin O'Connor Public Strategies on behalf of the BSB Association, expressed support as well. Eric Link, testifying for the Virginia Bar Association, said the association continued to oppose the bill.
Committee members moved to report HB 293 with the substitute; the clerk opened the roll and the committee reported the bill with the substitute by a vote of 13 to 6. Delegate Helmer apologized for the late substitute.
The substitute as explained makes terminology changes (for example, aligning "certificate of formation" language with Virginia practice), adjusts fees and cancellation procedures, and aims to limit additional regulatory burdens on the State Corporation Commission. The bill will proceed per the committee’s report; the next procedural step is floor consideration according to the General Assembly calendar and rules.
No amendments were recorded in committee beyond the late substitute; the transcript does not show further committee instructions or referrals beyond the report with substitute and vote.
Ending: HB 293 now moves forward after committee approval; supporters and opponents remain on record and any further amendments or debate will occur at subsequent stages of the legislative process.
