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Minnesota2026Passed Legislature

HF3709

Allowing Banks and Credit Unions in Minnesota to Offer Virtual-Currency Custody Services

Last scannedAug 22, 2026, 3:39 AM

In one sentence

This law allows banking institutions and credit unions in Minnesota to safely hold or manage virtual currency for customers starting August 1, 2026.

What it does

  • Allows banking institutions and credit unions to offer services that keep, control, or manage virtual currency on behalf of others.
  • Requires these financial groups to maintain written rules covering risk management, internal controls, cybersecurity, business continuity, and compliance before starting the service.
  • Mandates a written notice sent to state officials at least 60 days before starting any new virtual-currency custody work.
  • Ensures that customer virtual currency is kept separate from the bank's or credit union's own money and property so it is not treated as their asset.
  • Permits banks and credit unions to hire outside companies to help with these services while keeping final oversight responsibility.

Who it affects

  • Banking institutions in Minnesota
  • Credit unions in Minnesota
  • Customers or members who want their virtual currency held by a bank or credit union

Limits and unknowns

  • This law does not allow banks or credit unions to do anything that is already illegal under other laws.
  • The state commissioner can stop these services if the activity looks unsafe or unsound.
  • The rules only apply to new virtual-currency custody services started on or after August 1, 2026.

Plain language

Terms to know

Virtual-currency custody services
The act of safely keeping, controlling, or managing digital money or the secret keys needed to access it for another person.
Segregation of assets
Keeping customer property separate from a company's own property so they are not mixed together and treated as different things.

Official record

Sources

Validated
Official bill pageIntroduced textOfficial digestCurrent bill textStored full record

Official summary

Virtual-currency custody services allowed to be offered and performed.

Official activity

Bill history

  1. Presented to Governor 05/12/2026House
  2. Presentment date 05/12/26Senate
  3. Returned from Senate with amendmentHouse
  4. House rule 1.15 (c), message requesting concurrence receivedHouse
  5. Special Order: AmendedSenate
  6. Comm report: Subst. for SF on General Orders SF3794Senate
  7. Received from HouseSenate
  8. Third readingHouse
  9. House rule 1.21, placed on Calendar for the DayHouse
  10. Committee report, to adoptHouse
  11. Introduction and first reading, referred to Commerce Finance and PolicyHouse