Assembly Bill 471 Could Exempt Bitcoin Node Operators, Stakers and Developers From Money-Transmitter Licensing

• Exempts node operators, stakers, developers, and self-custody users from state money transmitter rules.

• Prohibits state or local agencies from banning or restricting accepting crypto or running blockchain nodes.

• Introduced with nine sponsors; bill referred to the Committee on Financial Institutions after Wisconsin sold its $300 million Bitcoin ETF stake.

Wisconsin crypto bill Assembly Bill 471 exempts node operators and stakers from money transmitter rules — read how it affects payments and custody. Learn more.

What is Assembly Bill 471 and who does it protect?

Assembly Bill 471 is a bipartisan Wisconsin bill that would exempt individuals and businesses from state money transmitter licensing when accepting cryptocurrency payments, using self-hosted wallets, running blockchain nodes, developing blockchain software, or participating in staking. The bill prevents state agencies and local governments from restricting these activities.

How does the bill define license exemptions for node operators and developers?

The legislation creates specific exemptions for “operating a node or a series of nodes on a blockchain,” “effectuating the exchange of one digital asset for another digital asset if there is no exchange of digital assets for legal tender,” “developing software on a blockchain,” and “digital asset mining or staking,” according to the bill text. This narrows the state’s licensing reach to on-chain infrastructure and non-custodial activity.

Why do supporters say this will attract crypto businesses?

Supporters argue the bill clarifies on-chain activity is not a money transmission requiring state licensing, reducing regulatory uncertainty. Ruchir Gupta, co-founder of Gyld Finance, told COINOTAG that passage would “help attract more crypto-native businesses to Wisconsin—think DEXs, staking providers, and other fully on-chain platforms.” Gupta added the bill sets a precedent for regulatory clarity while noting federal FinCEN registration still applies to many providers.

When did this legislation arrive and what is its status?

The bill was introduced Monday with nine sponsors and was referred to the Committee on Financial Institutions for review. It follows the State of Wisconsin Investment Board’s report that it liquidated a $300 million position in BlackRock’s iShares Bitcoin Trust during Q1 2025 and recent bills aimed at imposing licenses on crypto kiosks after a surge in fraud complaints.

How does the bill interact with existing on- and off-ramps and banks?

The legislation does not remove federal obligations or affect banks and payment processors directly. On- and off-ramps that convert digital assets to legal tender will remain subject to existing money transmitter licenses and federal compliance, per legal analysis and stakeholder comments shared with local press outlets.

Frequently Asked Questions

What activities are specifically prohibited from being restricted by state agencies?

The bill bars state agencies and political subdivisions from prohibiting or restricting accepting digital assets as payment, taking custody of crypto using a self-hosted or hardware wallet, operating blockchain nodes, developing blockchain software, and engaging in staking or mining.

How will this affect consumers who use crypto kiosks or custodial services?

Consumers using custodial services or on-/off-ramps will still be covered by money transmitter rules and related consumer protections. The bill mainly protects non‑custodial, on‑chain activities and developer operations from state-level licensing.

Key Takeaways

• Regulatory carve-out: Assembly Bill 471 targets state-level licensing, exempting specific on-chain roles from money transmitter laws.
• Scope: Exemptions include node operation, staking, software development, self-hosted custody, and pure crypto-to-crypto swaps.
• Limitations: Federal obligations and traditional payment processors remain regulated; the bill does not replace federal oversight.

Conclusion

Assembly Bill 471 offers a narrowly tailored state-level approach to protecting non-custodial crypto activity and infrastructure in Wisconsin, potentially attracting on-chain businesses while preserving federal regulation for fiat on-ramps. Watch the Committee on Financial Institutions review for updates and next steps in state policy.