Minnesota Enacts Law Letting Banks and Credit Unions Custody Bitcoin

As of May 20, Minnesota has enacted HF 3709, authorizing state-chartered banks and credit unions to offer Bitcoin custody services beginning August 1, 2026. The law follows lopsided legislative votes in late April and early May and Governor Tim Walz’s signature on May 18. Institutions must give 60 days’ notice by June 2, maintain strict risk-management and cybersecurity policies, and segregate client assets without trading or lending them. Minnesota becomes the fourth U.S. state with a formal custody regime while simultaneously banning crypto ATMs to curb fraud. Local players such as St. Cloud Financial, already holding roughly 13.5 BTC, are positioned to expand regulated services.