Minnesota legislation permits banks and credit unions to offer cryptocurrency custody services while simultaneously banning cryptocurrency ATMs.

According to CoinDesk, Minnesota Governor Tim Walz signed a virtual currency bill that will allow state-chartered banks and credit unions to offer cryptocurrency custody services to customers starting August 1. Minnesota thus becomes the first Midwestern U.S. state to establish a unified legislative framework for this purpose. The law explicitly requires that customers’ digital assets be segregated from the institutions’ own assets, and mandates that institutions submit risk management and cybersecurity plans to the Minnesota Commissioner of Commerce at least 60 days prior to offering such services. Meanwhile, Walz separately signed another bill banning cryptocurrency ATMs and kiosks statewide effective August 1, citing their widespread use as tools for fraud—particularly harmful to elderly populations.