Why Minnesota is empowering local banks to fight Wall Street for crypto revenue
Minnesota has enacted a law allowing state-chartered banks and credit unions to offer cryptocurrency custody services. This legislation aims to prevent deposit flight to out-of-state crypto platforms and keep local financial institutions competitive. The law, effective August 1, 2026, comes with a ban on crypto ATMs and requires compliance with strict federal standards.
- ▪The new law is designed to stem deposit flight from local banks to crypto exchanges.
- ▪Lawmakers believe that the measure is necessary to keep community institutions competitive against Wall Street's push into digital assets.
- ▪The legislation was signed by Governor Tim Walz and will take effect in August 2026.
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FinanceShareShare this articleCopy linkX iconX (Twitter)LinkedInFacebookEmailWhy Minnesota is empowering local banks to fight Wall Street for crypto revenueA local banker told CoinDesk that in light of Wall Street’s aggressive push into the crypto industry, Minnesota's financial institutions could not afford to remain on the sidelines.By Olivier Acuna|Edited by Aoyon Ashraf May 22, 2026, 5:53 p.m. 3 min readMake preferred on Minnesottan lawmaker, Rep. Bernadette "Bernie" Perryman, explained that she co-authored the bill for crypto services to shield the state's economy from further capital flight.
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