Wisconsin Lawmakers Target Crypto Freedom — New Bill Could Slash Regulatory Barriers
Lawmakers in Wisconsin are pushing ahead Assembly Bill 471, a proposal that might considerably reshape the state’s method to crypto regulation by exempting a number of digital asset actions from cash transmitter licensing necessities.
The invoice, launched by a gaggle of Republican legislators with one Democratic co-sponsor, was referred to the Committee on Financial Institutions earlier this week. It seeks to make clear how the Wisconsin Department of Financial Institutions (DFI) treats crypto-related operations, setting out express exemptions for actions which have typically existed in a regulatory grey zone.
Wisconsin Bill Seeks to Exempt Crypto Mining, Staking, and Transfers from Licensing Rules
Assembly Bill 471 seeks to exempt people and companies engaged in mining, staking, creating blockchain software program, or transferring digital belongings from having to acquire a DFI cash transmitter license.
This carve-out might decrease boundaries to entry for startups and unbiased operators by eradicating one of the important compliance hurdles.
The invoice additionally shields digital asset exchanges when transactions don’t contain changing crypto into U.S. {dollars} or depositing buyer funds into conventional banks.
In apply, this is able to enable platforms facilitating crypto-to-crypto transfers to function without having transmitter licenses in Wisconsin.
The laws goes additional by defending on a regular basis customers and entrepreneurs. Residents would explicitly be free to just accept cryptocurrencies as fee for items and companies and to retailer belongings in self-hosted or {hardware} wallets with out regulatory constraints.
The textual content additionally ensures that Wisconsinites can function blockchain nodes, develop purposes on blockchain protocols, and take part in staking actions.
Importantly, it features a securities exemption for third-party staking suppliers, supplied that the rewards distributed originate immediately from blockchain networks reasonably than from middleman revenue fashions.
Backers argue that the laws reduces regulatory grey areas and helps the expansion of digital asset companies in Wisconsin. If enacted, the measure might encourage extra entrepreneurs to arrange operations within the state, with fewer hurdles round licensing.
However, proponents of stricter oversight warn that exemptions corresponding to these in Assembly Bill 471 might complicate coordination with federal regulators, together with the Securities and Exchange Commission (SEC) and the Financial Crimes Enforcement Network.
Notably, Assembly Bill 471 has a 25% development fee, in line with legislative trackers, because it should clear committee opinions and chamber votes earlier than reaching the governor’s desk. While Republican sponsors have pushed for broader adoption of crypto-friendly insurance policies, Democrats stay cautious.
Wisconsin Expands Crypto Push as States Race Toward Bitcoin Reserves and Blockchain Laws
Wisconsin has already signaled an openness to digital belongings. Last 12 months, it grew to become the primary U.S. state authorities to achieve publicity to Bitcoin via an investment in BlackRock’s iShares Bitcoin Trust.
In July, Democrats launched a separate measure concentrating on cryptocurrency kiosks, requiring operators to acquire Division of Banking licenses, show fraud alerts, and conduct full know-your-customer checks. The proposal additionally seeks to cap transactions at $1,000 per buyer per day.
Similarly, the state launched a scam tracker to warn the general public about fraud after residents misplaced $3.55 million to scams since 2022, with most circumstances tied to pig butchering schemes and pretend crypto platforms.
Meanwhile, this proposal follows a rising pattern amongst U.S. states to place themselves as enticing hubs for blockchain innovation. Wyoming and Texas have handed related legal guidelines, granting extra freedom for digital asset custody, mining, and token issuance.
Notably, Wyoming launched the Frontier Stable Token (FRNT) on mainnet, changing into the primary U.S. state to subject a state-backed secure token via a public entity.
Meanwhile, Massachusetts lawmakers will maintain an October 7 listening to on Senate Bill S.1967, launched by Senator Peter J. Durant, which proposes creating a state-backed Strategic Bitcoin Reserve to park surplus funds, hedge towards inflation, and diversify belongings.
Michigan lawmakers additionally not too long ago revived House Bill 4087, which might let the state allocate as much as 10% of funds to Bitcoin and different cryptocurrencies, doubtlessly becoming a member of Texas, Arizona, and New Hampshire in sovereign crypto initiatives.
Connecticut goes anti-crypto as Governor @GovNedLamont indicators complete Bitcoin reserve ban whereas 26 states introduce 47 Bitcoin reserve payments with Texas and New Hampshire main adoption.#CryptoBill #US #Connecticuthttps://t.co/gqX3eh8YGL
— Cryptonews.com (@cryptonews) July 1, 2025
While many states are advancing crypto payments and companies, Connecticut takes a tough stance because the state’s governor signed a sweeping ban on state Bitcoin reserves, whilst 26 states push 47 Bitcoin reserve payments, with Texas and New Hampshire on the forefront.
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