New Legislation Would Shield Crypto Users from State Restrictions in Wisconsin

Assembly Bill 471, introduced this week, attempts to strip away money transmitter licensing requirements for a wide range of crypto-related activities — from mining and staking to accepting digital assets as payment.

If approved, the legislation would make clear that individuals and businesses can operate blockchain nodes, build software, or stake tokens without needing authorization from the state’s Department of Financial Institutions. It also affirms the right to use self-hosted wallets and hardware wallets, a move designed to protect personal custody of digital assets.

Perhaps most notable, the measure bars state agencies or municipalities from restricting residents who want to accept crypto for legal goods and services. Exchanges would be free to facilitate token-for-token transactions, though converting into dollars or depositing into banks would still fall outside the exemptions.

A Patchwork of Rules

Crypto advocates have long criticized the inconsistent legal treatment of digital assets across the United States. Some states have embraced innovation with clearer rules, while others have maintained a gray area that leaves businesses uncertain.

Wisconsin’s proposal is one of the latest efforts to give explicit protections at the state level, signaling a growing trend of localized crypto legislation.

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Roadblocks Remain

Despite the enthusiasm, the bill has a long way to go. With backing from seven Republicans in the Assembly and two in the Senate, it has been sent to the Committee on Financial Institutions. According to tracking site Legiscan, it is only a quarter of the way through the process and still needs approval from two more committees and one chamber before it could become law.

Should it succeed, Wisconsin would position itself as one of the more crypto-friendly states in the Midwest, at a time when federal regulators continue to struggle with crafting comprehensive national rules.

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