On Monday, Wisconsin lawmakers introduced a bill that, if passed, would exempt residents and businesses in the state from needing money transmitter licenses to mine, stake, and exchange digital assets.
A document from the Wisconsin Legislative Reference Bureau indicates that the bill aims to clarify the exemptions from the Department of Financial Institutions’ licensing requirements for activities related to money transmission.
As per the proposed exemptions in Wisconsin Assembly Bill 471, individuals and businesses would not require DFI licenses for crypto mining, staking, and blockchain software development.
It also exempts the exchange of digital assets as long as the transactions do not involve converting to legal tender or bank deposits.
“According to the bill, neither a state agency nor a political subdivision can prohibit or restrict an individual from accepting digital assets as payment for legal goods and services or from taking custody of digital assets using a self-hosted or hardware wallet,” the document states, adding that:
“The bill further clarifies that individuals in this state may 1) operate a node to connect to a blockchain protocol and engage in its operations; 2) develop software for a blockchain protocol; 3) transfer digital assets to others using a blockchain protocol; and 4) participate in staking on a blockchain protocol.”
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This bill represents another effort to clarify some of the legal ambiguities surrounding state-level crypto regulation. A clear framework is still lacking nationwide, despite the rising adoption of cryptocurrencies.
Wisconsin bill still has hurdles to pass
Sponsored by seven Republican House members and two Republican co-sponsors from the Senate, the bill has been referred to the Committee on Financial Institutions.
Legiscan reports that the bill currently has a progression rate of 25%, still needing to pass through one chamber and two additional committees before it can possibly be enacted.
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