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Minnesota Governor Signs Law Allowing Banks to Offer Bitcoin Custody

Minnesota Governor Signs Law Allowing Banks to Offer Bitcoin Custody

Minnesota Governor Tim Walz signed HF 3709 to allow regulated crypto custody by state-chartered banks and credit unions from Aug. 1, 2026, while SF 3868 bans new crypto ATMs and phases out existing machines.

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Fact Check
Multiple independent sources confirm the core claim. The Bitcoin Magazine X post (the linked source) explicitly names Governor Tim Walz and the bill, with specific vote counts. The St. Cloud Financial Credit Union LinkedIn post independently confirms Walz signed the virtual currency custody bill into law. The official Minnesota Revisor of Statutes site (HF 4188) shows the legislative text establishing virtual-currency custody for banking institutions. The Minnesota House of Representatives weekly review corroborates the bill's committee approval. Minor discrepancies in bill number (HF 2301 vs HF 4188) may reflect a companion bill or different versions, but do not undermine the core claim. The claim that Minnesota's Governor signed a law allowing banks and credit unions to offer Bitcoin custody services is well-supported.
Summary

Minnesota Governor Tim Walz signed HF 3709, allowing state-chartered banks and credit unions to provide regulated custody for Bitcoin and other digital assets starting Aug. 1, 2026. The law requires institutions to maintain risk controls and security policies, give 60-day notice before launching services, and keep customer assets strictly segregated. Walz also signed SF 3868, which bans new crypto ATMs in the state and phases out existing machines. The measures address both institutional digital asset custody and tighter restrictions on retail crypto access points.

Terms & Concepts
  • crypto custody: A service in which a regulated institution holds and safeguards digital assets on behalf of customers.
  • Bitcoin: A decentralized digital currency that can be transferred and stored electronically without a central issuer.
  • crypto ATMs: Physical machines that allow users to buy, and in some cases sell, cryptocurrency using cash or other payment methods.