Key Takeaways
- Wisconsin lawmakers propose a bill to simplify regulations for crypto, potentially exempting activities like mining and staking.
- The proposed legislation aims to reduce hurdles by waiving licensing requirements for several crypto-related operations.
- This move follows Wisconsin’s previous decision to liquidate a $300 million investment in a Bitcoin ETF.
- The new bill could exempt crypto mining, staking, and wallet usage from state money transfer regulations.
- Wisconsin is shifting its approach to crypto, now favoring a more supportive regulatory framework.
Wisconsin’s legislative body is considering Assembly Bill 471, introduced on Monday, which seeks to streamline digital asset regulations for both individuals and businesses operating within the state. The proposed bill would exclude various crypto-related endeavors from being subject to money transmitter licensing mandates under the current regulatory structure. This action follows the state’s controversial move earlier this year to divest its $300 million investment in a Bitcoin exchange-traded fund (ETF).
Assembly Bill 471 Focuses on Specific Crypto Activities
The legislative text details exemptions for particular activities within the cryptocurrency space, including the creation of new blocks (mining), staking tokens to earn rewards, and the development of blockchain-based software. It also addresses the exchange of digital currencies, on the condition that these transactions do not involve converting them into traditional government-issued money or depositing them into traditional banking institutions. These provisions are designed to create clearer and more defined guidelines for cryptocurrency regulation at the state level.
Lawmakers suggest that individuals who manage blockchain nodes, create blockchain protocols, or transfer digital assets should not be required to obtain a license. Furthermore, individuals or organizations that use self-managed or hardware wallets for safekeeping digital currencies would also be free from licensing obligations. State government departments and local political divisions would be prevented from imposing restrictions on these actions.
The bill is currently being examined by the Committee on Financial Institutions before it can proceed to a vote by the full Assembly. If it passes the Assembly, it will then be reviewed and voted on by the Senate. For the bill to become law, it must then be signed into effect by the governor.
Wisconsin’s Changing Strategy After ETF Sale
In May of 2025, the Wisconsin Investment Board sold off its entire $300 million holding in BlackRock’s Bitcoin ETF. This decision occurred shortly before concerns regarding tariffs led to instability in the market, which caused the price of Bitcoin to fall below $75,000. The sale sparked considerable debate regarding the state’s long-term vision for digital assets.
Democratic legislators have introduced bills that would require money transmitter licenses for cryptocurrency ATMs, citing an increase in fraudulent activities. These proposals emerged following a significant increase in fraud reports, which rose by 99% and resulted in statewide losses of $247 million. Assembly Bill 471 now offers a contrasting approach from Republican lawmakers who are advocating for more supportive cryptocurrency policies.
With nine Republican sponsors and just one Democrat, the bill currently exhibits a somewhat partisan nature, but it has significant forward momentum in the legislature. Widespread support from both parties will be important for its complete approval. Despite internal political disagreements, Wisconsin is still actively involved in defining how cryptocurrency is regulated.
Potential Effects on Businesses and Limits
If passed into law, the bill could make it easier for decentralized platforms, staking service providers, and software developers to operate legally within Wisconsin. The legislation might also incentivize blockchain-based businesses to establish their operations in the state without needing to navigate complex and restrictive licensing rules. This could fuel further local innovation in blockchain technology and minimize obstacles to doing business.
The bill does not affect companies that handle custodial services involving fiat currency conversions, such as MoonPay, which remain under federal oversight. Businesses registered with FinCEN are still required to adhere to federal regulations, regardless of any exemptions provided at the state level in Wisconsin. Therefore, while the bill adds clarity to some rules, it does not remove all regulatory requirements.
Wisconsin is also currently reviewing three additional pieces of legislation related to cryptocurrency, including proposals that focus on regulating crypto ATMs and offering tax incentives for data centers. These proposals further showcase the state’s continued dedication to refining its policies for governing cryptocurrencies. The direction Wisconsin takes with its legislation could potentially influence other states considering similar reforms.