Minnesota laws expand innovation, state charter options

The Minnesota state legislative session brought the successful passage of two key legislative priorities for the Minnesota Credit Union Network (MnCUN), expanding consumer choice, strengthening financial security, and positioning credit unions to meet evolving member needs.

The newly passed measures authorize credit unions to provide custodial accounts for digital assets and choose private share insurance. The two measures received strong bipartisan support despite a closely divided legislature.

“These new laws reflect a strong, bipartisan commitment to giving Minnesotans more choices while maintaining important safeguards,” said Mara Humphrey, MnCUN president/CEO. “Credit unions are focused on serving their members, and these updates ensure we can continue to do that in a rapidly changing financial landscape.”

The two bills:

1. Authorize state-chartered credit unions to offer custodial services for digital assets, such as cryptocurrency, allowing those credit unions to provide secure storage and related services within a regulated, local framework; and 
2. Expand deposit insurance options to allow state-chartered credit unions to choose private share insurance as an alternative to federal insurance.

“Credit unions are moving to meet members’ changing needs while maintaining the trust and security people expect,” said Ryan Smith, MnCUN chief advocacy officer. “These new tools allow credit unions to meet members where they are, whether that’s protecting their deposits or helping them safeguard new financial technologies.”

The Minnesota State Legislature ended its 2026 legislative session on time at midnight on Sunday, May 17.