Why Minnesota is empowering local banks to fight Wall Street for crypto revenue

A 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.\nWhat to know : Minnesota has enacted a first-of-its-kind Midwestern law allowing state-chartered banks and credit unions to offer cryptocurrency custody services, aiming to stem deposit flight to out-of-state crypto platforms. Lawmakers and local bankers say the measure is needed to keep community institutions competitive as Wall Street accelerates its push into digital asset infrastructure, stablecoins and tokenization. The law, which takes effect Aug. 1, 2026, comes alongside a statewide ban on crypto ATMs and kiosks and will require institutions offering custody to meet strict federal compliance standards without the protection of federal deposit insurance.