Wisconsin Explores Deregulation of Cryptocurrency Sector
A legislative proposal in Wisconsin, designated as Assembly Bill 471 (AB 471), seeks to significantly alter the regulatory landscape for cryptocurrency and blockchain technologies within the state. The bill, introduced by a bipartisan group of eight representatives, primarily aims to protect residents’ rights to engage with digital assets and to streamline licensing requirements for certain financial transactions. This initiative aligns with a broader trend toward cryptocurrency deregulation observed across the United States, mirroring the approach adopted during the Trump administration’s focus on fostering innovation in emerging technological sectors.
The core tenets of AB 471 center on establishing clear protections for individuals and businesses involved in the cryptocurrency ecosystem. Key provisions include a prohibition on governmental bodies restricting or banning the acceptance of crypto payments, storage of digital assets, development of blockchain solutions, trading, mining, and node management. This aims to provide a stable and predictable environment for participants in the growing digital asset space.
Streamlining Licensing and Taxation
A notable aspect of the proposed legislation is the exemption of certain entities from requiring a Money Transmitter License (MIT) for specific cryptocurrency-related activities. Under AB 471, both individuals and legal entities would be relieved of this licensing obligation when engaged in the exchange of crypto assets, provided these exchanges do not involve conversion into fiat currency. Furthermore, the bill proposes tax exemptions for crypto asset exchanges that do not result in conversion to fiat or a bank deposit, potentially encouraging on-chain transactions and reducing the tax burden on certain digital asset movements.
Moreover, AB 471 intends to safeguard existing local regulatory frameworks, preventing municipal governments from unilaterally altering established rules concerning digital assets. However, the bill is designed to be specific in its scope, explicitly excluding oversight and licensing for activities beyond the defined parameters. For instance, entities offering services to convert crypto assets into fiat currency would still be required to obtain an MIT license.
Path to Legislation and Broader Context
According to information from Bitcoin Laws, AB 471 must successfully navigate review by two legislative committees before proceeding to a vote in both chambers of the Wisconsin legislature for potential enactment. This legislative process underscores the deliberative nature of policy changes in the state. The introduction of AB 471 is indicative of a wider national movement toward a more permissive regulatory stance on cryptocurrencies, aiming to foster economic growth and technological advancement by reducing perceived barriers to entry and operation for businesses in the digital asset sector.
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