Gov. Walz Signs Bitcoin Custody Bill, Letting Minnesota Banks Hold Crypto Aug. 1
Key Takeaways
- Minnesota Gov. Tim Walz signed HF 3709, letting state-chartered banks offer bitcoin and crypto custody.
- The law takes effect Aug. 1, 2026, requiring a 60-day Commerce Department notice before services launch.
- St. Cloud Financial Credit Union reported 20% of members hold crypto, signaling strong local demand.
State-Chartered Banks in Minnesota Will Be Able to Custody Bitcoin Under New Law
The legislation, now Chapter 93 of the 2026 Session Laws, takes effect Aug. 1, 2026. It applies only to services offered on or after that date.
Under the new law, qualifying institutions may provide virtual-currency custody services, which cover safekeeping, controlling, or administering digital assets in a fiduciary, custodial, or non-fiduciary capacity. The law does not permit banks to trade, invest, or lend th