Minnesota Banks Go Crypto: It’s a Custody Party, Folks!

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130-4 in the House and 51-16 in the Senate. Even the politicians agree on something for once!

But hold your horses, crypto cowboys! These institutions gotta follow rules stricter than a Brooks comedy script-cybersecurity, internal controls, the whole shebang.

Minnesota just said “Hold my beer” to the crypto world! State-chartered banks and credit unions can now play nanny to your digital dollars, thanks to Chapter 93 of H.F. 3709. Governor Tim Walz signed it faster than you can say “blockchain,” and it’s been the law since August 1, 2026. It’s like a bar mitzvah for Bitcoin, but without the awkward dancing.

Here’s the kicker: banks can go full fiduciary or just dip their toes in as nonfiduciary custodians. Credit unions? Strictly nonfiduciary-no overachieving allowed. It’s like letting your cousin watch your pet goldfish: they’ll keep it alive, but don’t expect a fish spa day.

The bill sailed through the legislature like a hot potato-130-4 in the House, 51-16 in the Senate, and a final 119-6 concurrence. Rep. Bernie Perryman (R-St. Augusta) and Rep. Steve Elkins were the masterminds behind this crypto comedy. Bipartisan support? In this economy?

Rules? We Got Rules!

Don’t think Minnesota’s going full Wild West. Banks and credit unions gotta dot their i’s and cross their blockchain t’s. Written policies on cybersecurity, business continuity, and risk management? Check. Notify the commissioner 60 days before launching? Double check. Keep customer crypto separate from the house funds? Triple check. It’s like a financial Swiss Army knife-but with more paperwork.

Oh, and third-party custodians? They’re in, but only if they play by Minnesota’s rules. It’s like bringing a plus-one to a wedding-they’re welcome, but don’t embarrass us.

Minnesota: The Crypto Capital of the Midwest?

Minnesota’s not just dipping its toes in the crypto pool-it’s doing cannonballs. The CFTC’s watching like a hawk, but Minnesota’s like, “We got this.” Prediction markets? Crypto custody? Bring it on. It’s like the state’s turning into a fintech sitcom, and we’re all here for the laughs.

Meanwhile, the rest of the U.S. is playing catch-up. States are tripping over themselves to write crypto laws, trying to balance innovation with “Don’t lose all your money.” Minnesota’s just over here, sipping crypto lemonade, like, “We’re already on season two.”

So, what’s next? Minnesota banks and credit unions are gearing up to join the big leagues of institutional crypto. It’s like they’re finally getting invited to the cool kids’ table-and they’re bringing their own blockchain.

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2026-05-19 13:08