The new bill aims to make Wisconsin one of the most business-friendly states in the U.S., removing licensing requirements for various crypto activities.
Wisconsin lawmakers are working to transform the state into a more favorable territory for digital assets. A new bill could ease regulatory burdens for companies and individuals operating in the digital asset sector.
Assembly Bill 471, introduced by Republican members of the Wisconsin Assembly and assigned to the Committee on Financial Institutions, seeks to exempt certain digital asset activities from the requirement to obtain licenses as money transmission services.
Exemptions proposed by the bill
If approved, the measure would make it easier to accept cryptocurrency payments, develop blockchain software, conduct mining operations, or stake tokens without needing specific state authorizations.
The bill exempts a range of digital asset-related activities from licensing requirements, including mining, staking, and direct exchanges between digital assets that do not involve conversion to fiat currency.
Additionally, the proposed legislation introduces a securities exemption for third-party providers offering technical staking services, provided that the rewards distributed consist solely of those generated by the blockchain network itself.
Between business hubs and new ATM rules
The initiative aims to make Wisconsin a more attractive jurisdiction for crypto entrepreneurs. Despite this vision, state Democrats have introduced bills requiring stricter oversight of Bitcoin ATMs, citing their role in facilitating scams targeting elderly residents.
A bill filed in July in the Assembly by Democratic lawmakers requires all Bitcoin ATMs operating in the state to obtain a license from the Banking Division. The measure also mandates the display of anti-fraud notices and full KYC procedures by ATM operators.
The bill further limits daily transactions per customer to $1,000. The legislation was introduced in the state Senate by Democrats in August and referred to the Committee on Financial Institutions and Heritage Assets.
Comparison with other states
Critics of the new bill argue that these exemptions could open the door to abuse and complicate coordination with federal regulators such as the Financial Crimes Enforcement Network (FinCEN) and the Securities and Exchange Commission (SEC).
Wisconsin is not the first state to pursue legislation favorable to Bitcoin and other digital assets. States like Wyoming and Texas have passed laws providing clarity for digital asset custody, mining, and token issuance, with other states having similar bills pending.
If AB471 is approved, Wisconsin could position itself alongside Wyoming and Texas as one of the most permissive environments for Bitcoin and crypto businesses in the United States.
