Minnesota Governor Signs Bill Allowing Banks, Credit Unions to Offer Crypto Custody on Friday

According to the Minnesota Legislature website, Governor Tim Walz signed bill HF 3709 into law on Friday, May 16, allowing banks and credit unions to offer cryptocurrency custody services. The legislation takes effect on August 1, 2026.

Banking institutions and credit unions must maintain written policies governing risk management, internal controls, and security, and submit written notice detailing risk management frameworks to the Minnesota Commissioner of Commerce at least 60 days before commencing crypto custody services. The bill also requires institutions to ensure segregation of client assets from their own assets.