Wisconsin Aims to Ease Crypto Regulation: New Bill Explained

Wisconsin's New Crypto Regulation: What is Assembly Bill 471?

The US State of Wisconsin is taking a pivotal step towards easing crypto regulation. The lawmakers have introduced a new bill titled Assembly Bill 471 that will exempt certain individuals and businesses from needing a money transmitter license in order to engage in cryptocurrency mining, staking, or exchanging digital assets. If passed, the legislation could have major implications for the United States crypto industry, leading to more innovation and adoption.

New Wisconsin Crypto Regulation Unveiled

On Monday, Wisconsin lawmakers introduced Assembly Bill 471, a law designed to reduce certain restrictions surrounding businesses in the digital asset industry. If passed, the new regulation would streamline the licensure process for money transmitters involved in certain virtual asset activities, allowing businesses and individuals to participate in cryptocurrency payments, blockchain development, mining, and staking more efficiently.

According to the bill's official statement, the purpose is to create distinct exemptions from licensing from the Department of Financial Institutions for some digital asset activity, including crypto mining, staking, and web3 development. It states, “Under the bill, 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 wallet.” The proposed bill added,

“The bill also specifies that a person in this state may 1) operate a node for the purpose of connecting to a blockchain protocol and participating in the blockchain protocol’s operations; 2) develop software on a blockchain protocol; 3) transfer digital assets to another person utilizing a blockchain protocol; and 4) participate in staking on a blockchain protocol.”

Will AB471 Clear the Legislature?

Notably, the introduction of AB471 reflects the ongoing divide among Wisconsin lawmakers on crypto regulation. Republicans are pushing for crypto-friendly policies, and Democrats are advocating for stricter oversight, particularly regarding cryptocurrency kiosks.

Recently, Democrats filed for stricter cryptocurrency ATM rules, citing growing scams and fraud involving them. Michael Gavigan, assistant chief legal counsel for the Department of Financial Institutions, noted,

“We’re used to seeing some really harrowing stories about losses that people incur. If we can prevent one of those, that’s a job well done. Obviously, we’re hoping the impact will be broader than that.”

This diverse approach of the lawmakers makes the enactment of the latest crypto regulation uncertain. With seven Republican sponsors in the House and two in the Senate, AB471 has been referred to the Financial Institutions Committee. Currently, it has a 25% progression rate, requiring passage through one chamber and two additional committees to become law.