Wisconsin Crypto Licensing Exemption Bill Moves Forward

Lawmakers in Wisconsin have introduced new legislation aimed at exempting cryptocurrency users and businesses from state money transmitter licensing requirements. The Wisconsin crypto licensing exemption bill, known as Assembly Bill 471, follows the state government’s recent liquidation of its substantial $300 million Bitcoin ETF holdings.

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Background: Proposed Exemptions for Crypto Activity

Introduced on Monday with bipartisan sponsorship from nine legislators, Assembly Bill 471 seeks to shield a range of digital asset activities from Wisconsin’s state licensing rules. If enacted, it would cover individuals and businesses engaged in the acceptance of crypto payments, operation of self-hosted wallets, blockchain node operations, software development, and staking processes.

The bill was formally referred to the Committee on Financial Institutions and is currently awaiting review. The legislation would prevent any state agency or political subdivision from prohibiting or restricting these specified activities. According to the bill text, the proposed exemptions specifically apply to actions such as “operating a node or a series of nodes on a blockchain,” “effectuating the exchange of one digital asset for another digital asset if there is no exchange of digital assets for legal tender,” “developing software on a blockchain,” and “digital asset mining or staking.”

Market Reaction and Industry Insight

Industry response has highlighted both the opportunities and limitations inherent in the Wisconsin crypto licensing exemption proposal. Ruchir Gupta, co-founder of Gyld Finance, commented to Decrypt that if passed, “it’ll help attract more crypto-native businesses to Wisconsin—think DEXs, staking providers, and other fully on-chain platforms.” He also suggested the bill sets a regulatory precedent that other states could follow, providing clarity for blockchain operations.

Gupta noted, however, that this legislation would not fundamentally alter the landscape for most providers, since many operate across multiple states and remain under FinCEN registration and compliance requirements. He clarified, “the bill doesn’t really impact banks and payment processors,” as fiat on- and off-ramps will still require existing money transmitter licenses (Decrypt).

The push for the Wisconsin crypto licensing exemption comes just months after the State of Wisconsin Investment Board sold off its entire $300 million position in BlackRock’s iShares Bitcoin Trust, as revealed in SEC filings for Q1 2025. The liquidation occurred just prior to tariff-driven market instability that led to a sharp Bitcoin price drop below $75,000.

The growing interest in crypto policy reform comes amid heightened concern about cryptocurrency-related fraud. In August, Democratic lawmakers in Wisconsin introduced twin bills seeking to require money transmitter licenses for crypto kiosks, citing a significant surge in fraud complaints. Data showed a 99% increase in reported cases, with victims losing nearly $247 million in 2024.

What’s Next for Assembly Bill 471?

Assembly Bill 471 will next be reviewed by the Committee on Financial Institutions before proceeding further in the legislative process. The outcome could affect how digital asset businesses and users operate in Wisconsin, potentially reducing regulatory hurdles and serving as a model for other states considering similar reforms. At the same time, proponents and critics alike will be watching for impacts on consumer protections and fraud prevention.

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