Wisconsin’s Assembly Bill 471 seeks to exempt some crypto businesses from state money transmitter licensing

Lawmakers in Wisconsin are moving to give cryptocurrency a friendlier home in the state, with a new bill that could reduce some limitations for businesses and individuals working in the sector.

Assembly Bill 471, introduced by Republican members of the Wisconsin Assembly and referred to the Committee on Financial Institutions, aims to shield some digital asset activities from money transmitter licensing requirements. 

If successful, the bill would make it easier to accept crypto payments, build blockchain software, run mining rigs, or even stake tokens, without having to secure a state license.

Wisconsin Republicans propose protections

The bill exempts a range of cryptocurrency-related activities, such as mining, staking, and digital asset-for-digital asset exchanges where no conversion to legal tender occurs, from licensing requirements.

In addition, the legislation introduces a securities exemption for third-party providers offering technical staking services, so long as any rewards distributed are strictly those generated by the blockchain network itself. 

This measure is expected to make Wisconsin a more attractive jurisdiction for crypto entrepreneurs in a country that has taken a pro-crypto stance since the return of President Donald Trump to the White House. 

The regulatory landscape is divided 

The push for AB471 comes as Wisconsin lawmakers remain split on how to handle crypto-related issues. While Republican lawmakers are more pro-crypto and champions of advancing proposals that increase penetration and crypto-activities in the state, Democrats have taken a more defensive approach. 

Democrats in the state legislature have filed bills seeking stricter oversight of cryptocurrency kiosks, citing their role in facilitating scams targeting elderly residents.

A bill filed in July in the Assembly by state House Democrats wants to mandate all virtual currency kiosks operating in the state to have a Division of Banking license. It also wants to mandate the kiosks to project fraud alert warnings and the performance of full KYC by kiosk operators. 

In addition, the bill caps daily transactions per customer at $1,000. The bill was filed in the state senate by Democrats in August and has been referred to the Committee on Financial Institutions and Sporting Heritage.

The two approaches by the state’s legislators highlight the tension between promoting innovation and addressing consumer protection risks.

Critics, however, warn that these exemptions could open the door to abuses 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 crypto-friendly legislation, but the breadth of its proposed exemptions sets it apart. States such as Wyoming and Texas have passed laws providing clarity for digital asset custody, mining, and token issuance, with many states having crypto-related bills waiting to move to the next level.

If AB471 passes, Wisconsin could position itself alongside Wyoming as one of the most permissive environments for Bitcoin businesses in the US. Market participants say that could attract firms engaged in staking, node operation, and software development.

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