Overview
- Minnesota enacted HF 3709, signed by Gov. Tim Walz, allowing state‑chartered banks and credit unions to offer virtual‑currency custody beginning August 1, 2026.
- Institutions must keep written policies for risk management, internal controls, cybersecurity, business continuity, and compliance before launching custody services.
- Banks and credit unions must notify the Minnesota Commissioner of Commerce at least 60 days before launch and describe the services and their risk framework.
- The law requires customer crypto and related control systems to be kept separate from the institution’s own assets, and it permits vetted third‑party subcustodians under the institution’s oversight.
- A separate law, SF 3868, outlaws public crypto ATMs starting August 1, 2026, requires removal of kiosks by December 31, 2026, and mandates operators return customer funds in cash or by sending crypto to a chosen wallet.