THU AM News: Bankers group VP defends opposition to crypto staking bill; UW political science expert says new tariff justification is flawed

February 26, 2026

— A speaker from the Wisconsin Bankers Association defended the group’s opposition to digital asset staking legislation, challenging federal guidance on how the technology should be classified.

The bill, from Sen. Rachael Cabral-Guevara, R-Fox Crossing, and Rep. Adam Neylon, R-Pewaukee, would specify that digital asset staking and services enabling staking are not considered securities under state law.

Staking allows owners of digital assets such as cryptocurrencies to lock in their virtual tokens to a blockchain, a decentralized transaction record that underpins these technologies. By committing their assets to the blockchain for a certain period, owners can receive rewards for helping to secure the network.

The bill’s supporters argue Wisconsin is falling behind by currently classifying staking as a security, pointing to recent SEC guidance that clashes with state law.

In testimony before the Senate Committee on Utilities, Technology and Tourism yesterday, WBA Vice President of Government Relations Lorenzo Cruz urged lawmakers to oppose SB 885.

He said the bill raises concerns about consumer protection and regulatory certainty, noting staking involves third-party service providers, monetary transactions and expectations of return — all characteristics of other systems subject to financial market regulations.

“This looks to us like a security,” Cruz said.

When asked by committee chair Sen. Julian Bradley, R-New Berlin, to elaborate on the conflict with SEC guidance, Cruz pointed to “division” between commissioners at the federal agency.

“I think there are folks that still believe that this is and should be treated as a security, so while there may be guidance out there at the federal level that views this as a service, we support the department’s position here under the state law that treats digital asset staking as a security,” he said.

Meanwhile, Neylon repeated earlier claims that state residents have missed out on $4 million in staking rewards due to how the state classifies the practice.

“This is earned income that we are losing out on,” he said. “The SEC has said specifically through guidance that this is an IT service, it should not be treated like a security. And we are one of only four states in the country that is treating this as a security.”

The Assembly version of SB 885 cleared that chamber on a voice vote last week.

Several other speakers yesterday lined up in favor of the bill, including a member of the state policy team for Coinbase, the largest U.S.-based crypto exchange. Ashley Gunn argued the legislation would keep the state competitive in the digital economy without weakening consumer protections.

Others who urged support for the legislation include: Michael Anton Adam, CEO of Milwaukee-based ADAM Aerospace; Spencer X. Smith, founder of Madison-based AmpliPhi Digital; Tiara Nicole, an artist and founding member of the Wisconsin Blockchain Business Council; and Russ Frum, president and co-founder of WayFi Wireless in Madison.

See an earlier story on the legislation from State Affairs.

— A UW-Madison political science expert says President Donald Trump’s justification for newly announced tariffs is flawed.

Jon Pevehouse, a professor of political science with the university, was a featured speaker during this week’s UW Now livestream, hosted by the Wisconsin Alumni Association.

His comments came after the U.S. Supreme Court on Friday struck down most of Trump’s tariffs enacted through the International Emergency Economic Powers Act as unconstitutional. As a response, the president announced he’s enacting a 15% tariff on all goods entering the country under Section 122 of the 1974 Trade Act, Pevehouse said.

Those tariffs can only be in place for 150 days without action by Congress, unlike the IEEPA tariffs that would have stayed in place as long as the president’s declaration of a national emergency was in place. The Section 122 tariffs are being justified by a “balance of payments problem” within the United States, Pevehouse explained.

“We do not have an imbalance of payments problem, and many people have pointed this out in the last few days, suggesting that a lawsuit that would stop these tariffs should be pretty easy to file and win for any manufacturers that are still bothered … by these tariffs,” he said.

Several major Wisconsin companies are reportedly suing the Trump administration over the tariffs and seeking refunds, including Milwaukee Tool and Kohl’s.

Barring a court decision in the meantime, Pevehouse predicted Trump will use the 150-day window to find other tools to enact tariffs without needing to involve Congress.

“The interesting big-picture strategy implication here is that Trump has lost his leverage,” he said. “Many folks viewed these tariffs not as a way to bring back jobs, not as a way to raise money, although that was a nice side effect, but it was a way to get new … trade deals with countries that would be more beneficial to the United States.”

While other countries that had already struck a deal may “feel like they look a little silly” for having done so, others that haven’t will likely “dig in their heels” and hold out for a court decision or action by Congress, Pevehouse said.

Meanwhile, the longer that tariffs are in place, the more consumers feel the impact, he noted. In the short-term, companies will often absorb the increased costs rather than passing them on to their customers.

“But the longer those stay on, companies are just unwilling to do it,” Pevehouse said. “So especially on things like manufactured goods, those tariffs had not really kicked in for a lot of consumer-side purchases. Those are more likely to do so now the longer this drags on.”

Watch the video.

— The latest Marquette Law School Poll suggests public opinion is turning against data centers in Wisconsin.

In the group’s most recent survey from this month, 70% of voters said the costs of these large projects outweigh their benefits, while 29% said the benefits outweigh the costs. That’s a large swing from October’s survey, when 55% said data center costs outweighed benefits and 44% said the opposite.

Data center opinions among Republicans changed little between October and February, with 55% saying costs outweigh benefits and 43% saying benefits outweigh costs in the latest survey. But Democrats and Independents in the poll had substantial increases in opposition over that period, rising to 85% and 76%, respectively.

When respondents were asked to select the most important benefits of data centers from a list provided in the poll, top responses included creating new jobs for technical workers and others, and providing new tax revenue for local communities.

When asked about costs with a similar framework, the top selections including water use straining local resources, worries about AI development and higher electricity costs for others.

The poll of 818 registered voters was conducted Feb. 11-19. The overall sample had a margin of error of plus or minus 4.3 percentage points.

See the full results.

— Dem lawmakers say a bill to establish minimum nurse staffing ratios would address the root causes of the state’s health care worker shortage by combating stress, heavy workloads and understaffing.

Sen. Chris Larson, D-Milwaukee, held a Capitol press conference yesterday with fellow Dems and the Wisconsin Federation of Nurses and Health Professionals. They said 138,000 nurses left the profession between 2022 and 2024 nationally, according to the National Council of State Boards of Nursing.

Larson said safe staffing ratios will reduce turnover, increase patient safety, reduce readmission of patients, length of stay and errors. He argued the changes would also be “cost neutral” for those reasons.

In response to the possibility of some areas of the state, such as rural areas with smaller pools of workers to choose from, struggling to meet staffing requirements, Larson said part of the issue is ensuring nurses’ needs are being heard.

“Part of it is they, in facilities all over the state, they have ground them down without hearing their concerns so they’re leaving the profession,” Larson said, adding health care facilities are making decisions based on “what’s better for their bottom lines” over what’s good for patients.

He argued overworking of nurses, stress and burnout are to blame for staffing shortages.

The Nurse Staffing and Patient Protection Act began circulating for cosponsorship yesterday. The Assembly adjourned for the session late last week. Last session’s version of the legislation did not receive a hearing in either chamber.

Ruthie Malis, a hematology, oncology and cellular therapy nurse, spoke in support of the proposal.

She said she watched fellow nurses struggle during the COVID-19 pandemic with a lack of staffing and resources while doing her clinical rotations for nursing school and working nights as a certified nursing assistant, “all while hospitals had record profits and bonuses for their executives, but no raises for nurses.”

“The system saw in that time how much they could profit off of shortstaffing, cutting back on resources and abusing and manipulating nurses’ compassion and it has not turned back since,” Malis said.

The bill would establish minimum nurse-to-patient ratios for hospitals and require hospitals to develop and adhere to a staffing plan for registered nurses approved by a nurse staffing committee, with fines of $25,000 or more for failing to submit a plan to the Department of Health Services on time.

It would also:
*Give nurses the right to refuse an assignment if it would compromise patient safety or their nursing license;
*Prohibit hospitals from requiring registered nurses to work overtime with certain exceptions, such as if they are involved in an ongoing surgical procedure or working in a critical care unit; and
*Provide protections aimed at preventing retaliation against nurses who exercise rights named in the bill.

GOP legislative leaders did not immediately return requests for comment on the proposal.

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