Caroline Bishop
September 30th, 2025, 13:05
Wisconsin legislators showcase leggis who fire and clean opening shots that could become a national battle to attract cryptocurrency businesses…
Wisconsin lawmakers fired the opening shot, which could become a national battle to attract cryptocurrency businesses, and introduced cleaning laws that eliminate licensing requirements for digital asset management, ranging from bitcoin mining to blockchain development.
Congressional Bill 471, released Monday by Republican lawmakers, is one of the most comprehensive procrypt regulatory frameworks attempted at the state level and could position Wisconsin as a haven for digital asset businesses that escape stricter jurisdictions.
Cleaning up exemptions will target multiple crypto activities
The proposed law exempts individuals and businesses from obtaining remittance licenses from Wisconsin financial institutions for a wide range of cryptocurrency activities. Under current regulations, many of these businesses face uncertain licensing requirements that allow them to cost tens of thousands of dollars and months of regulatory reviews.
The bill specifically covers cryptocurrency mining operations, token staking activities, blockchain software development, and peer-to-peer digital asset exchange waiver without conversion to traditional currency. Additionally, the law protects the use of companies that accept self-hosted wallets, blockchain node operations, and cryptocurrency payments.
“This represents a fundamental shift in the way states approach cryptocurrency regulations,” said Jennifer Martinez, a digital asset lawyer at Chicago-based company Cryptolegal Partners. “Wisconsin essentially deploys red carpets for crypto companies operating in regulatory gray areas.”
Timing coincides with industry transition trends
The bill’s introduction is as cryptocurrency companies are increasingly relocating to states with a clearer regulatory framework. Texas and Wyoming have gained significant market share by establishing crypto-friendly policies, and in Texas alone, they have collected more than 40% of the US Bitcoin mining business following China’s 2021 mining ban.
The Wisconsin move could prove particularly attractive for staking operations facing licensing uncertainties in multiple states. The Act includes certain securities exemptions from third-party staking service providers where it is limited to network-generated compensation rather than speculative investments.
The bill arrives amid an increase in institutional adoption of cryptocurrencies. While the Corporate Treasury allocation to Bitcoin reached $37 billion in 2024, traditional financial institutions have launched over 150 cryptocurrency products and services.
Republican-led initiatives face political headwinds
Congressional Bill 471 was introduced by seven Republican members of the House of Representatives, including key sponsors Adam Neyron, Nate Gustafson and Rick Gundrum, with additional support from Senate Republicans Patrick Testton and Rachel Cabral Guevara. The bill is assigned to the Committee on Financial Institutions for initial review.
However, the law faces potential obstacles to Wisconsin’s politically divided legislature. Democrats have historically expressed concern about the environmental impact of cryptocurrencies and the issue of consumer protection, particularly following the collapse of famous industries in 2022 and 2023.
“We need to support innovation, but ensure that appropriate consumer protection is maintained,” said Robert Chen, director of the Midwest Digital Policy Institute. “The challenge is to balance business-friendly policies with the proper monitoring of the industry, where critical volatility and fraud cases have been seen.”
The meaning of economic development
State economic development officials estimate that cryptocurrency companies can generate substantial tax revenue and employment opportunities. Mining operations alone generally require critical infrastructure investments and faces scrutiny regarding energy consumption, but creates high technical employment.
Wisconsin manufacturing bases and relatively low electricity costs may prove attractive to mining operations, particularly as the industry moves to more sustainable practices. The state’s renewable energy capacity has increased 15% each year since 2020, potentially addressing environmental concerns.
The law also sets up Wisconsin to compete with established, crypto-friendly jurisdictions. Wyoming has licensed more than 30 cryptocurrency companies since 2019, but Texas has acquired major mining operations from companies such as Riot Platforms and Marathon Digital Holdings.
A broader regulatory environment
Wisconsin’s proposal reflects broader momentum towards state-level cryptocurrency regulations. Over 20 states have implemented digital asset laws in 2025, ranging from comprehensive frameworks to targeted exemptions for specific activities.
The clarity of federal regulations remains limited, creating opportunities for states to establish competitive advantages through clear, business-friendly policies. The Securities and Exchange Commission and Commodity Futures Trading Commission are working on comprehensive cryptocurrency regulations, but the implementation timeline remains uncertain.
Industry observers are hoping for Wisconsin’s approach to impact neighboring states, particularly as cryptocurrency adoption accelerates among retail and institutional investors. The bill’s broad exemption could serve as a template for similar laws in the Midwest.
“As we act promptly to establish a clear and rational framework, we will gain market share from jurisdictions that maintain restrictive or uncertain policies,” Martinez noted. “Wisconsin appears to be aware of this competitive dynamic.”
The law is currently awaiting a committee review, and supporters hope to pass it during the current legislative meeting. If enacted, the exemption can be effective immediately and could lead to rapid business transfers and investment decisions across the cryptocurrency industry.
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