Minnesota law lets banks and credit unions custody segregated crypto, bans ATMs from Aug. 1, 2026
Minnesota signed HF 3709 into law, allowing state-chartered banks and credit unions to offer cryptocurrency custody while imposing a statewide ban on crypto ATMs, both taking effect Aug. 1, 2026 [1][2].
Governor Tim Walz approved House File 3709 on May 16, permitting Minnesota’s state‑chartered banks and credit unions to provide cryptocurrency custody services starting Aug. 1, 2026 [1] [2] [3].
The legislation requires complete segregation of client digital assets from institutional holdings and obliges financial institutions to give the Minnesota Commerce Commissioner 60 days’ advance written notice before launching custody services [1].
Concurrently, the state enacted a statewide prohibition on cryptocurrency ATMs and kiosks, with the ban also set to begin on Aug. 1, 2026, removing that retail access channel while enabling custody through regulated deposit institutions [1] [4] [3].
The changes create a regulated path for institutional custody by banks and credit unions while restricting on‑the‑ground retail access via ATMs, reflecting Minnesota’s dual approach to digital‑asset policy [1] [3].
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Citations
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- 1Minnesota Takes Dual Approach to Crypto: Permits Bank Custody While Banning ATMsBlockonomi• May 19, 2026
- 2Minnesota Greenlights Crypto Custody by Banks and Credit UnionsCoinpaper• May 19, 2026
- 3Minnesota crypto custody law lets banks hold assets from Aug. 1crypto.news• May 19, 2026
- 4Minnesota Takes Dual Approach to Crypto: Authorizes Bank Custody While Prohibiting ATMsMoneyCheck• May 19, 2026
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