Wisconsin Senate Bill SB885

Wisconsin 2025-2026 Regular Session

• Introduced: 1/27/26
• Refer: 1/27/26
• Report Pass: 3/13/26
• Failed: 3/23/26

Caption

An Act to create 551.102 (5g), 551.102 (17r), 551.102 (28) (i) and (j) and 551.102 (30m) and (30p) of the statutes; Relating to: digital asset staking and the state’s securities laws.

Summary

SB885 would amend Wisconsin’s securities law definitions to expressly exclude digital asset staking and “staking as a service” from the definition of a security. The bill defines key terms including “digital asset,” “node,” “staking,” and “staking as a service,” with the definitions centered on blockchain systems that use proof-of-stake consensus mechanisms. In practical terms, the bill would clarify that activities such as locking tokens to support a blockchain network, operating a validator node, or using a third-party provider to facilitate staking are not treated as securities transactions under state law. The bill’s purpose appears to be regulatory clarification for the cryptocurrency and blockchain industry. By carving staking-related activities out of Wisconsin’s securities framework, it would reduce the likelihood that staking services are subject to registration or enforcement as securities offerings under chapter 551. The measure would therefore affect digital asset holders, staking service providers, validator operators, and businesses offering custodial or technical staking infrastructure in Wisconsin.

Impact

If enacted, SB885 would modify chapter 551 of the Wisconsin statutes by adding new definitions and exclusions that remove staking and staking-as-a-service from the scope of state securities law. This would narrow the Department of Financial Institutions’ reach over certain blockchain-related activities and could provide legal certainty for crypto firms and token owners participating in proof-of-stake networks. It would not broadly deregulate digital assets, but it would specifically exempt the covered staking activities from being treated as securities under Wisconsin law.

Sentiment

The available record shows no committee transcript or recorded votes, so there is no documented floor or committee debate to gauge support or opposition. The bill’s introduction and referral suggest it was treated as a technical or industry-specific securities clarification measure, but it ultimately failed to pass pursuant to Senate Joint Resolution 1. Based on the text alone, the bill appears designed to be pro-crypto and pro-industry, though the absence of recorded discussion means the level of legislative support or concern cannot be determined from the provided materials.

Contention

The main point of potential contention is whether staking and staking-as-a-service should be exempted from securities regulation at all. Supporters would likely argue that staking is a network participation function, not an investment contract, and that clear statutory exclusions are needed for blockchain innovation and business certainty. Opponents or regulators could be concerned that staking services, especially those involving custodial arrangements or third-party operation of validator nodes, may resemble investment products and should remain subject to investor-protection oversight. The bill’s broad exclusion of these activities from the securities definition is the central policy choice at issue.