Minnesota don approve crypto custody for banks, dem ban crypto kiosks

Minnesota Governor Tim Walz don sign two laws wey dey affect crypto custody and retail access. From Aug 1, 2026, HF 3709 go allow state-chartered banks and credit unions to offer “crypto custody” and safekeeping, but e no go allow dem to trade, invest, or lend customers’ assets. Institutions must give Minnesota Department of Commerce at least 60 days notice, put risk-management and cybersecurity policies in place, and make sure say customer holdings no mix with the institution’s own assets. Regulator fit stop services wey dem consider unsafe. Another law, SF 3868, ban crypto kiosks for the whole state and require operators make dem decommission existing machines by Aug 1, 2026. Na follow testimony from law-enforcement about fraud wey dey target seniors. The article talk say get about 400 licensed kiosk locations and documented losses, including about $500,000 for Faribault and $248,000 for Apple Valley since 2022, plus about $82,000 in BTC kiosk fraud for Minneapolis in 2025. Commerce report say average loss na $6,700 per reported scam, and only 48% of victims recover funds with average recovery just 16%. For traders, the move to regulated crypto custody fit redirect demand away from high-risk kiosk channels. Watch for short-term changes for local retail flows, but the wider market impact likely limited.