Wisconsin Lawmakers Introduce Assembly Bill 471 Aimed At Reducing Barriers For Crypto Activities
Wisconsin lawmakers introduced Assembly Bill 471 (AB 471), a bipartisan measure aimed at reducing regulatory barriers for cryptocurrency activities in the state.
The bill proposes explicit exemptions from the state’s money transmitter licensing requirements, administered by the Department of Financial Institutions (DFI), for a wide range of digital asset operations. This could position Wisconsin as a more attractive hub for blockchain innovation, similar to states like Wyoming and Texas, by lowering compliance costs for non-fiat crypto transactions.
If passed, the exemptions would apply immediately upon enactment, potentially encouraging rapid business relocations and investments in crypto infrastructure. The bill has been referred to the Assembly Committee on Financial Institutions for review and is currently about 25% through the legislative process, according to tracking data.
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The legislation targets activities that do not involve converting digital assets to legal tender (e.g., USD) or bank deposits. Operating mining rigs or hardware to validate blockchain transactions. Removes licensing hurdles for energy-intensive operations, potentially boosting local data centers.
Participating in proof-of-stake networks to secure blockchains and earn rewards. Includes a securities exemption for third-party technical staking services, as long as rewards are solely network-generated.
Building or maintaining software for blockchain protocols. Fosters developer ecosystems without DFI oversight. Trading one cryptocurrency for another like BTC for ETH without fiat involvement.
Simplifies peer-to-peer and decentralized exchanges. Running full nodes to support blockchain networks. Protects decentralized infrastructure from state restrictions.
Accepting crypto as payment for goods/services or using self-hosted/hardware wallets for custody. Prohibits state agencies from banning or restricting these uses. Sending digital assets directly to another person or wallet. Enables seamless P2P transactions without licensing.
The bill explicitly states: “Neither a state agency nor a political subdivision may prohibit or restrict a person in accepting digital assets as a method of payment for legal goods and services or in taking custody of digital assets using a self-hosted wallet or hardware
Two Republican Senators and one Democrat (Rep. Tip McGuire), making it modestly bipartisan. This aligns with a pro-crypto shift under the Trump administration, amid federal uncertainty from the SEC and CFTC. Wisconsin currently has three other crypto bills under review, including ones on ATM regulations and data center tax exemptions.
Custodial services like MoonPay, which handle fiat conversions, would still require licenses and are not covered by these exemptions. Reduced barriers could attract Bitcoin mining firms, DeFi protocols, and wallet providers, spurring job growth in tech hubs like Madison.
Everyday activities like staking or paying with crypto become less risky, promoting adoption. Some worry it could invite illicit activity without federal safeguards, though proponents argue it clarifies rules in a patchwork regulatory environment.
Committee hearings could begin soon; passage isn’t guaranteed but reflects growing state-level momentum for crypto-friendly policies. This bill represents a significant step toward regulatory clarity, but it doesn’t override federal laws.
By exempting activities like crypto mining, staking, node operation, and non-fiat exchanges from licensing requirements, the bill lowers compliance costs. This could make Wisconsin an attractive destination for blockchain startups, DeFi platforms, and mining operations, especially compared to states with stricter regulations.
The immediate effect upon passage could draw crypto firms to Wisconsin, boosting local economies in tech hubs like Madison or Milwaukee. Data centers for mining or node operations may see increased investment.
Developers of blockchain software and decentralized protocols can operate without fear of licensing violations, fostering innovation in areas like smart contracts, NFTs, or layer-2 solutions.
Wisconsin could compete with crypto-friendly states like Wyoming, Texas, or Florida, positioning itself as a blockchain hub in the Midwest. Exemptions for accepting crypto payments and using self-hosted or hardware wallets protect everyday use cases.
This could encourage more merchants and individuals to adopt cryptocurrencies for transactions without legal uncertainty. Individuals engaging in staking or direct wallet-to-wallet transfers won’t face regulatory hurdles, making these activities more accessible and less legally ambiguous.
Without licensing requirements, there’s a risk of insufficient oversight for non-custodial services, potentially exposing users to scams or unreliable platforms, though the bill doesn’t affect custodial services requiring licenses.
Attracting crypto businesses could lead to job growth in tech, energy, and financial sectors, particularly in mining operations and blockchain development. Increased business activity could boost tax revenues, though the bill’s exemptions may limit direct licensing fees.
Related legislation on data center tax exemptions could further amplify economic impacts. Crypto mining, if expanded, could strain Wisconsin’s energy grid, raising concerns about sustainability and electricity costs, especially in rural areas.
The bill aligns with a pro-crypto trend under the current federal administration but may conflict with stricter SEC or CFTC regulations. It could set a precedent for other states to adopt similar exemptions, fragmenting the U.S. regulatory landscape.
Critics may argue that reduced oversight could attract money laundering or fraud, though the bill’s focus on non-fiat activities mitigates some risks. Federal laws like AML/KYC still apply to fiat-related crypto businesses.
Wisconsin could emerge as a Midwest leader in blockchain technology, attracting talent and capital. This aligns with national trends toward decentralized finance and Web3 development.
The bill’s immediate enactment could lead to rapid changes, but without federal clarity, businesses may still face legal risks. The 25% progress in the legislative process suggests uncertainty, as committee reviews and potential amendments could alter its scope.
