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Wisconsin Lawmakers Introduce Bill to Exempt Non-Custodial Crypto Activities From Licensing

The proposal narrows state licensing to fiat conversion services, offering explicit protections for non-custodial, on-chain use.

Overview

  • Assembly Bill 471 would exclude mining, staking, running nodes, developing blockchain software, using self-hosted wallets, and token‑to‑token trades from Wisconsin money‑transmitter licensing.
  • The measure prohibits state agencies and local governments from restricting residents who accept digital assets for lawful payments or take self‑custody via hardware or self‑hosted wallets.
  • Exemptions stop at fiat gateways, leaving custodial services and crypto‑to‑dollar conversions under existing state licensing and federal compliance obligations.
  • The bill, backed by nine Republican sponsors and one Democrat, was introduced on September 30 and referred to the Assembly Committee on Financial Institutions for review.
  • Parallel legislation would license virtual currency kiosks, reflecting a split approach as Wisconsin advances kiosk oversight alongside protections for fully on‑chain activity.