Plain English Breakdown
The plain English breakdown is still being put together. The official documents below are already here.
HF3709 • 2026
Virtual-currency custody services allowed to be offered and performed.
Virtual-currency custody services allowed to be offered and performed.
Passed Legislature
This bill passed both chambers and reached final enrollment, even if later executive action is not shown here.
Bill History
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2026-03-05
House
Committee report, to adopt
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2026-02-25
House
Introduction and first reading, referred to Commerce Finance and Policy
Official Summary Text
Virtual-currency custody services allowed to be offered and performed.
Current Bill Text
Read the full stored bill text
A bill for an act relating to financial institutions; allowing certain virtual-currency custody services to be offered and performed; proposing coding for new law in Minnesota Statutes, chapters 48; 52. BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF MINNESOTA: Section 1. new text begin [48.741] VIRTUAL-CURRENCY CUSTODY SERVICES. new text end new text begin Subdivision 1. new text end new text begin Definitions. new text end new text begin (a) For purposes of this section, the following terms have the meanings given. new text end new text begin (b) "Control of virtual currency" has the meaning given in section 53B.69, subdivision 2. new text end new text begin (c) "Virtual currency" has the meaning given in section 53B.69, subdivision 6. new text end new text begin (d) "Virtual-currency custody services" means safekeeping, controlling, or managing virtual currency, or the cryptographic private keys used to access virtual currency, on behalf of another person. new text end new text begin Subd. 2. new text end new text begin Authority. new text end new text begin A banking institution may provide virtual-currency custody services in a fiduciary or nonfiduciary capacity, subject to this section and applicable state and federal law. new text end new text begin Subd. 3. new text end new text begin Safety and soundness. new text end new text begin A banking institution that engages in virtual-currency custody services must conduct the activity in a safe and sound manner and must maintain written policies and procedures governing risk management, internal controls, cybersecurity, business continuity, and compliance. new text end new text begin Subd. 4. new text end new text begin Notice to commissioner. new text end new text begin A banking institution must provide written notice to the commissioner at least 60 days before commencing virtual-currency custody services. The notice must describe the nature of the services and the banking institution's risk management framework. new text end new text begin Subd. 5. new text end new text begin Fiduciary capacity. new text end new text begin (a) A banking institution may provide virtual-currency custody services in a fiduciary or custodial capacity, including as agent, bailee, or trustee for the limited purpose of safekeeping or administration of virtual currency, to the same extent the banking institution may lawfully hold or safeguard other assets for customers. new text end new text begin (b) The commissioner may limit or condition the authority to provide virtual-currency custody services under paragraph (a) only if the commissioner determines the activity is conducted in an unsafe or unsound manner. new text end new text begin Subd. 6. new text end new text begin Segregation of assets. new text end new text begin A banking institution must structure virtual-currency custody services to ensure that customer virtual currency and associated control mechanisms are legally and operationally segregated from the banking institution's assets and are not treated as the banking institution's property, consistent with the segregation of assets held in other custodial or fiduciary capacities and the concept of control of controllable electronic records under sections 336.12-101 to 336.12-107. new text end new text begin Subd. 7. new text end new text begin Third-party service providers. new text end new text begin A banking institution may engage one or more qualified third-party service providers or subcustodians to facilitate virtual-currency custody services, provided the banking institution retains oversight responsibility and ensures compliance with this section. new text end new text begin Subd. 8. new text end new text begin Supervision and examination. new text end new text begin A banking institution's virtual-currency custody services are subject to examination by the commissioner as part of the regular supervisory process. new text end new text begin Subd. 9. new text end new text begin Construction. new text end new text begin This section does not (1) authorize a banking institution to engage in activities otherwise prohibited by law, or (2) alter the legal characterization of virtual currency under state or federal law. new text end new text begin EFFECTIVE DATE. new text end new text begin This section is effective August 1, 2026, and applies to virtual-currency custody services commenced on or after that date. new text end Sec. 2. new text begin [52.25] VIRTUAL-CURRENCY CUSTODY SERVICES. new text end new text begin Subdivision 1. new text end new text begin Definitions. new text end new text begin (a) For purposes of this section, the following terms have the meanings given. new text end new text begin (b) "Control of virtual currency" or "control" has the meaning given in section 53B.69, subdivision 2. new text end new text begin (c) "Virtual currency" has the meaning given in section 53B.69, subdivision 6. new text end new text begin (d) "Virtual-currency custody services" means safekeeping, controlling, or managing virtual currency, or the cryptographic private keys used to access virtual currency, on behalf of another person. new text end new text begin Subd. 2. new text end new text begin Authority. new text end new text begin A credit union may provide virtual-currency custody services to the credit union's members in a fiduciary or nonfiduciary capacity, subject to this section and applicable state and federal law. new text end new text begin Subd. 3. new text end new text begin Safety and soundness. new text end new text begin A credit union that engages in virtual-currency custody services must conduct the activity in a safe and sound manner and must maintain written policies and procedures governing risk management, internal controls, cybersecurity, business continuity, and compliance. new text end new text begin Subd. 4. new text end new text begin Notice to commissioner. new text end new text begin A credit union must provide written notice to the commissioner at least 60 days before commencing virtual-currency custody services. The notice must describe the nature of the services and the credit union's risk management framework. new text end new text begin Subd. 5. new text end new text begin Fiduciary capacity. new text end new text begin (a) A credit union may provide virtual-currency custody services in a fiduciary or custodial capacity, including as agent, bailee, or trustee for the limited purpose of safekeeping or administration of virtual currency, to the same extent the credit union may lawfully hold or safeguard other assets for members or customers. new text end new text begin (b) The commissioner may limit or condition the authority to provide virtual-currency custody services under paragraph (a) only if the commissioner determines the activity is conducted in an unsafe or unsound manner. new text end new text begin Subd. 6. new text end new text begin Segregation of assets. new text end new text begin A credit union must structure virtual-currency custody services to ensure that customer virtual currency and associated control mechanisms are legally and operationally segregated from the credit union's assets and are not treated as the credit union's property, consistent with the segregation of assets held in other custodial or fiduciary capacities and the concept of control of controllable electronic records under sections 336.12-101 to 336.12-107. new text end new text begin Subd. 7. new text end new text begin Third-party service providers. new text end new text begin A credit union may engage one or more qualified third-party service providers or subcustodians to facilitate virtual-currency custody services, provided the credit union retains oversight responsibility and ensures compliance with this section. new text end new text begin Subd. 8. new text end new text begin Supervision and examination. new text end new text begin A credit union's virtual-currency custody services are subject to examination by the commissioner as part of the regular supervisory process. new text end new text begin Subd. 9. new text end new text begin Construction. new text end new text begin This section does not (1) authorize a credit union to engage in activities otherwise prohibited by law, or (2) alter the legal characterization of virtual currency under state or federal law. new text end new text begin EFFECTIVE DATE. new text end new text begin This section is effective August 1, 2026, and applies to virtual-currency custody services commenced on or after that date. new text end