Minnesota signs law allowing banks, credit unions to offer crypto custody services
The Block
Minnesota Governor Tim Walz signed a law permitting state-chartered banks and credit unions to offer cryptocurrency custody services starting in August 2026.Summary
Governor Tim Walz has signed HF 3709 into law, enabling banks and credit unions in Minnesota to provide cryptocurrency custody services beginning August 1, 2026. The legislation requires financial institutions to implement strict risk management and security policies, including the segregation of client assets from institutional holdings, and mandates 60-day advance notice to the Minnesota Commissioner of Commerce. Proponents note the law allows local institutions to remain competitive while providing customers with a safer, regulated alternative to offshore providers. Concurrently, the state has moved to ban crypto ATMs, joining a broader trend of increased regulatory scrutiny over retail kiosk operations.
(Source：The Block)