MADISON, WI – Blockchain advocates were in the State Capitol this week to show support for legislation that would allow cryptocurrency owners in Wisconsin to earn millions through a service known as staking – which is already allowed in 46 other states.
Senate Bill 885, which has bipartisan co-sponsors, received a hearing in the Senate Committee on Utilities, Technology and Tourism on Wednesday. The hearing comes on the heels of the Assembly advancing the proposal last week on a voice vote.
Staking is a safe and secure way for ordinary people to earn income, much like interest on a savings or checking account. Staking works by cryptocurrency owners voluntarily locking up their assets to help support the safety and security of some blockchains. In exchange they earn rewards – typically in the form of additional cryptocurrency. Wisconsin is one of just four states that has defined staking as a security, creating significant regulatory hurdles for staking platforms. Because of these restrictions, Wisconsinites have already missed out on more than $4 million in earnings—a number that continues to grow every day.
“Clarity beats bureaucracy every time,” said Adam Neylon, author of SB 885 alongside Rachael Cabral-Guevara. “I was encouraged that my Senate colleagues today heard directly from real Wisconsin businesses and entrepreneurs like Tiara Nicole, who made it clear they want to stay and grow here in Wisconsin. But they also told us that our outdated securities laws are costing them millions in missed capital, credits, and opportunities.”
Tiara Nicole, a Milwaukee entrepreneur, founding member of the Wisconsin Blockchain Business Council and Wisconsin Chapter Lead for SheFi testified on SB 885 saying, “Staking is a safe and secure way for people already utilizing blockchain technology to get rewards for their holdings. SB 885 would simply bring Wisconsin into the 21st Century, allowing Wisconsinites access to benefits nearly every other state has already allowed their residents to claim.”
Advocates for staking in Wisconsin are hoping the proposal will pass the Senate and be sent to Governor Evers before the Legislature adjourns in March.
“Forty-six other states have adopted clearer guidelines around staking and blockchain innovation. Wisconsin shouldn’t be the last state stuck in the past while everyone else moves forward,” Neylon said. “Instead of protecting investors, these old restrictions create confusion, block access to staking rewards that investors have already earned, and push innovators to consider relocating elsewhere. SB 885 cuts the red tape, brings clarity to crypto and blockchain businesses, and ensures Wisconsin remains competitive in a rapidly growing digital economy.”