Wisconsin Lawmakers Push for Broad Crypto Exemptions With New ‘Bitcoin Rights’ Bill

AB471 exempts mining, staking, and wallet based transactions from Wisconsin’s money transmitter licensing.

Republicans back AB471 for innovation, while Democrats push stricter rules targeting crypto kiosks and consumer safety.

Wisconsin’s proposal rivals Wyoming and Texas by offering one of the broadest crypto regulatory plans.

Wisconsin has moved to formalize protections for crypto users and developers with a new bill seeking to redefine how digital asset activities are treated under state law. Assembly Bill 471, filed on September 30 and referred to the Committee on Financial Institutions, would exempt certain crypto related operations from money transmitter licensing rules currently enforced by the Wisconsin Department of Financial Institutions

The measure covers activities such as mining, staking, node operation, and blockchain software development. It also extends to digital asset transactions that do not convert into legal tender, marking one of the broadest exemption efforts yet attempted at the state level.

What AB471 Seeks to Change

Current regulations require companies handling digital asset transfers to obtain a money transmitter license. Firms like MoonPay entered the state earlier this year under that framework, securing approval after meeting custodial requirements for converting crypto to fiat. However, AB471 sets a different level

According to the bill document, any activity involving direct control of digital assets through self-hosted or hardware wallets would fall outside regulatory licensing. That provision includes blockchain node operators and staking providers, as long as rewards are produced by the protocol itself.

Notably, the bill introduces wording that prevents state agencies or political subdivisions from restricting payments made in digital assets for legal goods and services. It also clarifies that individuals may transfer cryptocurrencies to another party without state interference.

Competing Legislative Paths in Wisconsin

The proposal arrives as lawmakers remain divided over digital asset oversight. Republican sponsors, nine in total according to the Legislative Reference Bureau, framed the exemptions as tools for economic development

Only one Democrat co-sponsored the bill, indicating a partisan split. Meanwhile, Democratic lawmakers have introduced bills targeting cryptocurrency kiosks. Their proposals call for full Division of Banking licensing, mandatory fraud alerts, and Know Your Customer verification at each terminal

Daily transaction limits of $1,000 per user were also included. These parallel efforts highlight contrasting priorities between expanding blockchain participation and tightening consumer protection. Each bill currently waits for advancement within different committees.

Other U.S. States

Wisconsin’s financial agencies have previously shown openness to digital assets. The state became the first in the country to gain exposure to Bitcoin through BlackRock’s iShares Bitcoin Trust

Data from Bitcoin Laws lists three additional crypto-related bills under review covering ATM standards and tax exemptions for certain data centers. However, AB471 introduces a wider exclusion framework than recent efforts in states like Wyoming or Texas. If passed, it would place Wisconsin among the least restrictive jurisdictions for self-custody users, node operators, and blockchain developers.

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