Minnesota Permits Banks to Offer Crypto Custody Services Starting August 1, Bans Crypto ATMs

According to CoinDesk, Minnesota Governor Tim Walz signed legislation on May 19 allowing state-chartered banks and credit unions to provide crypto custody services starting August 1, making Minnesota the first Midwest state with a unified regulatory framework. The law requires digital assets be segregated from institutional assets and mandates providers submit risk management and cybersecurity plans 60 days in advance to the state Commerce Commissioner.

Walz also signed a separate bill prohibiting crypto ATMs and kiosks statewide effective August 1, citing their use as fraud tools targeting elderly consumers.