MinnesotaBanks and credit unions may offer virtual-currency custody services
Starting August 1, 2026, Minnesota banks may serve any person and credit unions may serve members by safeguarding or managing virtual currency under specified safeguards.
What it does
Banks may safeguard or manage customers’ virtual currency and access keys, but they must meet safety, notice, oversight, and asset-separation requirements.
Credit unions may safeguard or manage members’ virtual currency and access keys, subject to safety rules, advance notice, supervision, and separation of member assets.
Argument forKeeping customer assets separate from an institution’s property could help clarify that the institution does not own those virtual-currency holdings.
Argument againstSafety controls, regular examinations, and 60 days’ advance notice could add costs or delay before institutions can begin offering these services.
More detail
A banking institution may provide virtual-currency custody services without acting as a fiduciary. This covers safekeeping, controlling, or managing virtual currency or the private keys used to access it for another person. The institution must follow state and federal law. It must operate safely and maintain written rules for risk management, internal controls, cybersecurity, business continuity, and legal compliance. It must give the commissioner written notice at least 60 days before starting the services. Customer virtual currency and related control mechanisms must remain legally and operationally separate from the institution's assets. The authority applies to custody services started on or after August 1, 2026.
A credit union may provide virtual-currency custody services to its members without acting as a fiduciary. This covers safekeeping, controlling, or managing members’ virtual currency or the private keys used to access it. The credit union must follow state and federal law. It must operate safely and maintain written rules for risk management, internal controls, cybersecurity, business continuity, and legal compliance. It must give the commissioner written notice at least 60 days before starting the services. Member virtual currency and related control mechanisms must remain legally and operationally separate from the credit union's assets. The authority applies to custody services started on or after August 1, 2026.
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Where it stands
- Introduced
- Passed 1st Chamber
- Passed 2nd Chamber
- To Governor
- Became Law
Looking ahead
No hearings or votes scheduled.
History
- 2026
- Aug 1Effective date 08/01/2026Latest
- May 15Secretary of State Chapter 93 05/15/26
- May 15Secretary of State, Filed 05/15/26
- May 14Governor Tim Walz's action Approval 05/14/26Major
- May 14Governor Tim Walz approval 05/14/2026Became Law
- May 12Presentment date 05/12/26
- May 12Presented to Governor 05/12/2026To Governor
- May 11Bill was repassed as amended by the Senate
- Vote recorded Passage, as amended by the Senate. Result: pass.Lower
- May 11Third reading as amended by the SenateMinor
- May 11Motion prevailed
- May 11Motion to concur with Senate amendments
- May 11Returned from Senate with amendment
- May 7House rule 1.15 (c), message requesting concurrence received
- May 6Third reading Passed as amendedPassed 2nd Chamber
- Vote recorded Third reading Passed as amended. Result: pass.Upper
- May 6Special Order: Amended
- May 5Second readingMinor
- May 5Comm report: Subst. for SF on General Orders SF3794
- May 4Referred to Rules and Administration for comparison with SF3794, now on General OrdersMinor
- May 4Introduction and first readingMinor
- May 4Received from HouseMinor
- Apr 30Bill was passedPassed 1st Chamber
- Vote recorded Passage. Result: pass.Lower
- Apr 30Third readingMinor
- Apr 28House rule 1.21, placed on Calendar for the Day
- Mar 5Author added Allen
- Mar 5Second readingMinor
- Mar 5Committee report, to adoptMinor
- Feb 25Introduction and first reading, referred to Commerce Finance and PolicyIntroduced
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