WI SB535

State agencies and political subdivisions (cities, villages, towns, counties) are prohibited from restricting individuals from accepting digital assets as payment for legal goods and services or from using self-hosted or hardware wallets to store digital assets.

Persons in Wisconsin may operate blockchain nodes, develop blockchain software, transfer digital assets via blockchain protocols, and participate in staking without state interference.

Creates exemptions from money transmitter licensing for operating blockchain nodes, exchanging digital assets for other digital assets (not for legal tender), developing blockchain software, and engaging in digital asset mining or staking.

Creates a securities transaction exemption for third-party staking services that enable token owners to earn network rewards, excluding services designed to generate returns beyond network-paid rewards.

Establishes statutory definitions for blockchain, digital asset, node, staking, self-hosted wallet, hardware wallet, and related technical terms.