Wisconsin Lawmakers Push Assembly Bill 471 to Ease Crypto Rules

TLDR

• Wisconsin bill seeks to ease crypto rules, exempting mining and staking.
• Lawmakers push crypto-friendly bill exempting key activities from licenses.
• Wisconsin moves to simplify crypto laws after $300M ETF exit.
• New bill exempts mining, staking, wallets from state money transfer rules.
• Wisconsin shifts stance with pro-crypto bill after ETF liquidation.

Lawmakers in Wisconsin introduced Assembly Bill 471 on Monday to simplify crypto regulation for individuals and businesses statewide. The bill proposes to exempt various crypto-related activities from money transmitter licensing requirements under the current financial framework. This move follows the state’s controversial decision to exit its $300 million investment in the Bitcoin ETF earlier this year.

Assembly Bill 471 Targets Key Crypto Activities

The bill outlines exemptions for specific crypto activities, including mining, staking and blockchain software development. It also covers the exchange of digital assets, provided that no conversion to legal tender or bank deposit is involved. These measures aim to create more precise boundaries for crypto regulation at the state level.

Lawmakers propose that individuals operating blockchain nodes, developing blockchain protocols, or transferring cryptocurrency assets will not require a license.  Individuals or companies that use self-hosted or hardware wallets for custody will also be exempt from licensing obligations. State agencies and political subdivisions will not be allowed to restrict these activities.

The bill is currently awaiting review in the Committee on Financial Institutions before being advanced to the Assembly floor. If approved, it would proceed to the Senate for similar scrutiny and a vote. The governor must then sign the bill to become law.

Wisconsin Shifts Stance After ETF Exit

In May 2025, Wisconsin’s Investment Board liquidated its entire $300 million stake in BlackRock’s Bitcoin ETF. The decision came just before tariff tensions led to market instability, causing Bitcoin’s value to drop below $75,000. The exit stirred debate on the state’s commitment to digital assets.

Democratic lawmakers introduced bills requiring money transmitter licenses for crypto ATMs, citing a rise in fraud. These proposals followed a surge in fraud complaints, which increased by 99% and resulted in $247 million in losses across the state. Assembly Bill 471 now represents a contrasting approach from Republican lawmakers who are pushing for pro-crypto regulation.

With nine Republican sponsors and only one Democrat, the bill is moderately partisan but has strong momentum in the legislature. Broader bipartisan support will be essential for its full passage. Despite internal political tensions, Wisconsin remains an active participant in shaping crypto regulation.

Pro-Business Impacts and Limitations

If enacted, the bill would facilitate the entry of decentralized platforms, staking services, and developers to operate legally in Wisconsin. The legislation may encourage blockchain firms to establish operations without facing restrictive licensing requirements. This could boost local blockchain innovation and reduce operational friction.

The bill does not impact custodial services, such as MoonPay, which handle fiat conversions and remain under federal oversight. Entities registered with FinCEN must still comply with national rules, regardless of any local exemptions in Wisconsin. So, while the bill enhances clarity, it does not eliminate all regulatory requirements.

Three additional crypto-related bills are under review in Wisconsin, including ones focused on crypto ATMs and tax incentives for data centers. These proposals further reflect the state’s ongoing efforts to refine its crypto regulation policies. Wisconsin’s legislative direction could influence other states exploring similar reforms.

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