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>>Minnesota rejects crypto kiosks while approving banks to hold cryptocurrency custody.

Minnesota rejects crypto kiosks while approving banks to hold cryptocurrency custody.

crypthub

5/18/2026, 11:13:43 PM

Custody Bill Passage

Minnesota’s HF 3709 passed the House 130‑4 and Senate 51‑16 and was signed by Gov. Tim Walz. It becomes effective Aug 1 2026 and lets state‑chartered banks and credit unions hold Bitcoin and other digital assets. The measure gained broad bipartisan support and mirrors similar laws in Wyoming and Nebraska.

Banking Responsibilities

Participating institutions may safeguard crypto for customers but cannot trade, invest, or lend it. They must notify the Dept. of Commerce 60 days in advance and maintain policies on risk, cybersecurity, controls, and continuity while keeping client assets separate. Third‑party custodians are allowed, yet the bank remains liable and regulators can shut unsafe services.

Kiosk Ban and Fraud Impact

A separate law, signed May 5, bans all cryptocurrency kiosks statewide, requiring removal by Aug 1 2026. Scams at these machines cost seniors over $900 000, with average losses of $6 700 and poor recovery rates. Minnesota joins Indiana and Tennessee as the third state to prohibit such kiosks.