Industry representative Paul Brigner told the committee the blockchain sector is maturing but rapidly evolving; he recommended piloting state-friendly use cases (sandboxes, incentives for decentralized AI and data-center synergies) and cautioned legislators to avoid rigid rules that might stifle innovation.

JCOTS staff reported that the commission's Blockchain Advisory Committee has met twice and is concentrating on policy design for regulatory sandboxes and decentralized autonomous organizations (DAOs), weighing sandbox scope, duration and administration models.

Committee chair recapped the August meeting and said members will draft specific recommendation language before the next meeting on three priority areas: separate DAO treatment vs LLCs, a regulatory sandbox (scope to be decided), and consumer protections for Bitcoin kiosks/ATMs.

The Virginia Blockchain Advisory Council debated whether to limit regulatory sandboxes to blockchain record‑keeping or include cryptocurrency/financial elements, citing prior state proposals and examples in other states; members agreed to refine recommendations for the Sept. 3 meeting.

A Virginia subcommittee voted 5–3 to advance a bill creating a limited‑liability digital entity (LLD) to provide DAO token holders protections akin to LLCs after supporters argued it improves transparency and opponents raised liability concerns.