Wisconsin lawmakers examine cryptocurrency regulations as scams grow

MADISON, Wis. (Gray) - A bipartisan Wisconsin legislative committee spent hours at the Capitol examining whether the growing cryptocurrency industry needs more regulation.

According to the Wisconsin Department of Financial Institutions, Wisconsin residents over the age of 60 lost $46 million to cryptocurrency scams in 2025.

“The cases that we see are many elderly people who have spent a lifetime accumulating their wealth and they lose it in a few seconds, and it’s heartbreaking,” Robin Jacobs, an attorney with the Department of Financial Institutions, said.

Jacobs said scammers prefer to use cryptocurrency because the transactions are permanent, fast and anonymous.

“The tools used to perpetrate scams are more sophisticated. They are more likely to involve cryptocurrency. They are more likely to be initiated through social media, and the amount of losses are vastly more significant,” Jacobs said.

Financial experts said some of the most common investment scams include pig butchering scams, in which a victim is lured into a financial trap through a fake romantic relationship, and phishing scams involving bogus websites.

As the cryptocurrency industry grows, lawmakers are examining what regulations, if any, should be added to the state’s law books.

“Somebody asked me one time, being in legislature, ‘What keeps you up at night?’ My answer is the unintended consequences of something that was really well intended,” said state Sen. Rob Stafsholt, (R), chair of the Financial Institutions and Sporting Heritage Committee.

The committee plans to meet again on Oct. 15. Committee members are seeking public input on ideas or proposals for legislation.