Minnesota Empowers Local Banks for Crypto Custody Amid Wall Street Push

Minnesota has enacted a groundbreaking law allowing state-chartered banks and credit unions to offer cryptocurrency custody services, aiming to counteract deposit flight to out-of-state crypto platforms. According to CoinDesk, the legislation, effective August 1, 2026, is designed to keep local financial institutions competitive as Wall Street firms expand into digital asset infrastructure. The law, co-authored by Rep. Bernadette 'Bernie' Perryman, also includes a statewide ban on crypto ATMs and kiosks. Local banks must meet strict federal compliance standards without federal deposit insurance protection.