Wisconsin Proposes Bill For Licensing Exemptions on Select Crypto Activities
Seven Republican MPs in the state House and two Republican senators have co-sponsored the new law. It clarifies that the Department of Financial Institutions (DFI) does not require licensing for certain activities. , staking, developing blockchain software, and trading digital assets are among the activities that are exempt from the law. However, these transactions cannot entail converting to cash or making bank deposits.
With these rules in place, crypto firms and local users will no longer have to deal with a key compliance issue, making Wisconsin a more favorable environment for digital asset innovation. The bill also aims to which types of money transmission activities require state oversight, thereby reducing confusion for both new and established businesses.
Supporting Blockchain Payments and Storage
The ensures that blockchain-based transactions and asset custody are well-supported. It states that state agencies and political subdivisions cannot prohibit individuals from using digital assets as payment for legitimate products and services. Residents would also be able to legally use self-hosted or hardware wallets to securely store their cryptocurrency.
The law also allows participants to run blockchain nodes, write software that interacts with , send tokens through decentralized networks, and stake tokens without requiring a money transmitter license. This level of specificity makes state law even more in line with new applications of blockchain, which assists firms and individuals utilize it in real-world settings.
Getting Over Legislative Hurdles
Even though the measure has a framework that looks to the future, it still needs to undergo several steps of legislative examination. It has been sent to the Committee on Financial Institutions and is now moving at a rate of 25%.
It needs to pass in one chamber and get approval from two committees before it can become law. As more people use and there is amlargeuity about federal regulation, other states will be keeping a close eye on their growth.
What This Means For Crypto Regulation
If the bill passes, it would be a significant step toward clarifying state-level regulations for cryptocurrency. This would assist the mining, , and blockchain software industries grow. The bill could encourage other states to make their own exemptions, which would make the US a more homogenized and innovation-friendly place.
