SB951: Bill Text

2025 - 2026 LEGISLATURE

LRB-3562/1

ARG:wlj

2025 SENATE BILL 951

February 6, 2026 - Introduced by Senator Drake, cosponsored by Representative Rivera-Wagner. Referred to Committee on Utilities, Technology and Tourism.

SB951,1,7 An Act to renumber subchapter IV of chapter 224 [precedes 224.90]; to amend 15.01 (6), 15.02 (3) (c) 1., 186.235 (7) (b) 1m., 220.02 (2) (h), 220.06 (1m) and 551.608 (1); to create 15.185 (6), 20.144 (1) (c) and subchapter V of chapter 224 [precedes 224.881] of the statutes; relating to: creating the Office of Financial Technology Innovation in the Department of Financial Institutions and a cryptocurrency pilot project, granting rule-making authority, and making an appropriation.

Analysis by the Legislative Reference Bureau

This bill creates the Office of Financial Technology Innovation in the Department of Financial Institutions to support responsible financial innovation in Wisconsin. The bill also requires DFI to conduct a cryptocurrency pilot project that includes grant awards.

Under the bill, the office must assist Wisconsin residents in establishing or expanding businesses offering innovative financial products by 1) providing guidance in understanding and navigating the regulatory process applicable for the business; 2) assisting the business, to the extent practicable, in securing any required license and complying with operational requirements; and 3) coordinating regulatory activities among different DFI divisions or units to streamline the regulatory process and collaborating with other state agencies. However, the office must also consider any risk to the public or consumer protection concern that may be associated with the proposed innovative financial product. An “innovative financial product” is defined as a financial product or service that incorporates new or emerging technology, as applied to the product or service, and that is under DFI’s regulatory jurisdiction. The office may conduct research, and publish its findings, related to emerging financial technology or innovative financial products to identify opportunities and risks associated with the technology or product. The office may also recommend rule changes that would facilitate or promote the development or growth of innovative financial products in Wisconsin. The bill also allows the office to recommend, and requires DFI to grant upon such a recommendation, a waiver of the initial license fee for a business that seeks a DFI-issued license to offer an innovative financial product.

The bill also requires DFI to conduct a pilot project that includes 1) education of the public on cryptocurrency; 2) education and assistance for the state’s business community in implementing cryptocurrency as an accepted method of payment for goods and services; 3) assistance to the state’s entrepreneurs in establishing or growing cryptocurrency-related businesses; and 4) awarding grants to promote the purposes specified in items 1 to 3. This pilot project ends on July 1, 2030.

For further information see the state fiscal estimate, which will be printed as an appendix to this bill.

The people of the state of Wisconsin, represented in senate and assembly, do enact as follows:

SB951,1 Section 1. 15.01 (6) of the statutes is amended to read:

SB951,3,4 15.01 (6) “Division,” “bureau,” “section,” and “unit” means the subunits of a department or an independent agency, whether specifically created by law or created by the head of the department or the independent agency for the more economic and efficient administration and operation of the programs assigned to the department or independent agency. The office of credit unions and the office of financial technology innovation in the department of financial institutions, the office of the inspector general in the department of children and families, the office of the inspector general in the department of health services, and the office of children’s mental health in the department of health services have the meaning of “division” under this subsection. The office of the long-term care ombudsman under the board on aging and long-term care and the office of educational accountability and the office of literacy in the department of public instruction have the meaning of “bureau” under this subsection.

SB951,2 Section 2. 15.02 (3) (c) 1. of the statutes is amended to read:

SB951,3,13 15.02 (3) (c) 1. The principal subunit of the department is the “division”. Each division shall be headed by an “administrator”. The office of credit unions and the office of financial technology innovation in the department of financial institutions and the office of children’s mental health in the department of health services have the meaning of “division” and the director of credit unions in the department of financial institutions and the director of the office of children’s mental health in the department of health services have the meaning of “administrator” under this subdivision.

SB951,3 Section 3. 15.185 (6) of the statutes is created to read:

SB951,3,17 15.185 (6) Office of financial technology innovation. There is created in the department of financial institutions an office of financial technology innovation.

SB951,4 Section 4. 20.005 (3) (schedule) of the statutes: at the appropriate place, insert the following amounts for the purposes indicated:

- See PDF for table

SB951,5 Section 5. 20.144 (1) (c) of the statutes is created to read:

SB951,4,10 20.144 (1) (c) Supporting cryptocurrency in business. As a continuing appropriation, the amounts in the schedule for the pilot project under s. 224.886, including the award of grants and administration of the pilot project.

SB951,6 Section 6. 186.235 (7) (b) 1m. of the statutes is amended to read:

SB951,4,17 186.235 (7) (b) 1m. Furnish any state regulatory authority regulating state financial institutions and the office of financial technology innovation with a copy of any examination made by the office of credit unions of any credit union or of any report made by the credit union, if the authority or office agrees to treat the information received under this subdivision with the same degree of confidentiality that is required of employees of the office of credit unions under par. (a).

SB951,7 Section 7. 220.02 (2) (h) of the statutes is amended to read:

SB951,4,20 220.02 (2) (h) Nondepository small business lenders under subch. IV VI of ch. 224.

SB951,8 Section 8. 220.06 (1m) of the statutes is amended to read:

SB951,5,23 220.06 (1m) No division employee may examine a bank or licensee in which that person is interested as a stockholder, officer, or employee. No division employee may examine a bank or licensee located in the same village, city, or county with any bank or licensee in which that person is so interested. Employees in the division, and each member and employee of the banking institutions review board, shall keep secret all facts and information obtained in the course of examinations or from reports not under s. 221.1002 (1) filed by a bank or licensee with the division, except so far as the public duty of the person requires reporting upon or taking special action regarding the affairs of any bank or licensee, and except when called as a witness in any criminal proceeding or trial in a court of justice. The division may furnish to the federal deposit insurance corporation, to a federal home loan bank, to any regulatory authority for state or federal financial institutions, insurance, or securities, to the office of financial technology innovation, or to any organization the membership of which is made up of regulatory authorities for state or federal financial institutions, insurance, or securities, a copy of any examination made of any such bank or licensee or of any report made by such bank or licensee and may give access to and disclose to the corporation, to any regulatory authority for state or federal financial institutions, insurance, or securities, to the office of financial technology innovation, or to any organization the membership of which is made up of regulatory authorities for state or federal financial institutions, insurance, or securities, any information possessed by the division, or to a federal home loan bank any information created by the division, with reference to the conditions or affairs of any such insured bank or licensee if the regulatory authority or office agrees to treat all information received with the same degree of confidentiality as applies to reports of examination that are in the custody of the division.

SB951,9 Section 9. Subchapter V of chapter 224 [precedes 224.881] of the statutes is created to read:

SB951,6,3 CHAPTER 224

SB951,6,5 SUBCHAPTER V FINANCIAL SERVICES INNOVATION

SB951,6,6 224.881 Definitions. In this subchapter:

SB951,6,9 (1) “Innovative financial product” means a financial product or service that incorporates new or emerging technology, as applied to the product or service, and that is under the department’s regulatory jurisdiction.

SB951,6,11 (2) “Office” means the office of financial technology innovation in the department.

SB951,6,15 224.882 Office duties. (1) (a) The office shall support responsible financial innovation in this state. The office shall assist residents of this state in establishing or expanding businesses offering innovative financial products by doing all of the following:

SB951,6,17 1. Providing guidance in understanding and navigating the regulatory process applicable for the resident’s business.

SB951,6,20 2. Assisting the resident’s business, to the extent practicable, in securing any required license or other approval and in complying with operational requirements imposed under the law of this state.

SB951,6,23 3. Coordinating regulatory activities among different divisions or units of the department to streamline the regulatory process and collaborating with other state agencies having regulatory authority over the resident’s business.

SB951,7,2 (b) In performing its functions under par. (a), the office shall also consider any risk to the public or consumer protection concern that may be associated with the proposed innovative financial product.

SB951,7,5 (2) The office may conduct research, and publish its findings, related to emerging financial technology or innovative financial products to identify opportunities and risks associated with the technology or product.

SB951,7,8 (3) The office may recommend to the secretary of financial institutions administrative rule changes that would facilitate or promote the development or growth of innovative financial products in this state.

SB951,7,10 (4) The office shall perform sufficient outreach to inform the public of the services provided by the office.

SB951,7,13 224.883 Fee waivers. Upon recommendation of the office, the department shall grant a waiver of the initial license or approval fee for a business that seeks a license or approval to offer an innovative financial product.

SB951,7,16 224.886 Pilot project supporting the adoption of cryptocurrency in business. (1) The department shall conduct a pilot project that includes all of the following:

SB951,7,17 (a) Education of the public on cryptocurrency.

SB951,7,20 (b) Education and assistance for the state’s business community in implementing cryptocurrency as an accepted method of payment for goods and services.

SB951,7,22 (c) Assistance to the state’s entrepreneurs in establishing or growing cryptocurrency-related businesses.

SB951,8,2 (d) Awarding grants to promote the purposes specified in pars. (a) to (c). The department shall promulgate rules related to the award of grants under this paragraph.

SB951,8,4 (2) The grants under sub. (1) (d) and all other activities of the department under this section shall be funded from the appropriation under s. 20.144 (1) (c).

SB951,8,6 (3) The pilot project under this section ends on July 1, 2030. No grant may be awarded under sub. (1) (d) after June 30, 2030.

SB951,10 Section 10. Subchapter IV of chapter 224 [precedes 224.90] of the statutes is renumbered subchapter VI of chapter 224 [precedes 224.90].

SB951,11 Section 11. 551.608 (1) of the statutes is amended to read:

SB951,8,21 551.608 (1) Objective of uniformity. The administrator shall, in its discretion, cooperate, coordinate, consult, and, subject to s. 551.607, share records and information with the securities regulator of another state, Canada, a Canadian province or territory, a foreign jurisdiction, the Securities and Exchange Commission, the United States Department of Justice, the Commodity Futures Trading Commission, the Federal Trade Commission, the Securities Investor Protection Corporation, a self-regulatory organization, a national or international organization of securities regulators, a federal or state banking or insurance regulator, the office of financial technology innovation, and a governmental law enforcement agency to effectuate greater uniformity in securities matters among the federal government, self-regulatory organizations, states, and foreign governments and for the purpose specified in s. 224.882 (1) (a) 3.

SB951,12 Section 12. Nonstatutory provisions.

SB951,9,2 (1) Cryptocurrency pilot project positions. The authorized FTE positions for the department of financial institutions are increased by 5.0 GPR positions, to be funded from the appropriation under s. 20.144 (1) (c), for the pilot project under s. 224.886.