Wisconsin Eyes Crypto Exemption Bill

Wisconsin lawmakers are considering a bill, Assembly Bill 471, that could significantly impact the state's crypto landscape. The proposed legislation seeks to exempt various crypto-related activities from the state's money transmitter licensing requirements.

What the Bill Proposes

If passed, the bill would create exemptions for individuals and businesses involved in:

• Operating blockchain nodes
• Exchanging digital assets (without fiat currency involvement)
• Developing blockchain software
• Digital asset mining or staking

Furthermore, the bill aims to prevent state agencies and local governments from restricting residents' ability to:

• Accept digital assets as payment
• Custody crypto using self-hosted or hardware wallets

Potential Impact

Supporters of the bill believe it could attract more crypto-native businesses to Wisconsin, fostering innovation and economic growth. They see it as a potential model for other states seeking regulatory clarity in the crypto space.

However, some experts caution that the bill's impact might be limited, as many crypto providers operate across multiple states and are still subject to federal regulations, such as FinCEN registration. The bill also doesn't affect banks and payment processors, which continue to operate under existing money transmitter licenses.

Background: Wisconsin and Crypto

This legislative effort comes after Wisconsin's State of Wisconsin Investment Board sold its $300 million stake in BlackRock's Bitcoin ETF earlier this year. Additionally, Democratic lawmakers in the state have previously introduced bills targeting crypto kiosks, aiming to address rising fraud concerns.

Key Takeaways:

• Wisconsin is considering a bill to exempt specific crypto activities from money transmitter laws.
• The bill aims to attract crypto businesses and provide regulatory clarity.
• The impact may be limited due to existing federal regulations and the bill's scope.