- HF 2845 mandates multi-sig wallets and audits for MN bank crypto custody.
- BTC at $74,984 up 1.0%; Fear & Greed Index hits 23 on April 15.
- Bill passed committee; House debate set for April 22, 2026.
State Rep. Shane Mekeland, R-Clear Lake, introduced the St. Cloud crypto bank bill, HF 2845, on April 15, 2026. It mandates cybersecurity protocols for Minnesota banks holding cryptocurrency. The bill advanced through the House Commerce Committee that day, per committee records.
Bitcoin traded at $74,984 USD, up 1.0% from $74,241 at 00:00 UTC, as of 14:00 UTC April 15, per CoinGecko data. Ethereum climbed 2.0% to $2,371 USD. The Fear & Greed Index registered 23, indicating extreme fear, according to Alternative.me data.
St. Cloud Crypto Bank Bill Provisions
HF 2845 requires banks to use multi-signature wallets for cryptocurrency holdings. These wallets demand approvals from multiple keys before transactions execute. Banks must file quarterly compliance reports with the Minnesota Department of Commerce.
Annual third-party cybersecurity audits become mandatory under the bill. Rep. Mekeland stated: "Minnesota banks need clear rules to protect client digital assets from hacks." The legislation bans lending client cryptocurrencies without explicit owner consent.
Client assets must remain segregated from bank balance sheets, per HF 2845 text. Provisions mirror 2021 Office of the Comptroller of the Currency (OCC) guidance on national bank crypto custody, according to federal OCC bulletins.
Cybersecurity Risks Cited in Legislation
Lawmakers cite the Ronin Network hack, where attackers stole $625 million USD on March 23, 2022, per Chainalysis reports. The exploit targeted validator nodes in the Axie Infinity bridge.
FTX's collapse in November 2022 erased $8 billion USD in client funds, according to U.S. bankruptcy court filings. Such incidents underscore custody vulnerabilities.
Banks store private keys in hardware security modules (HSMs) or cold storage wallets. Hot wallets face higher exploit risks from online connectivity. Multi-party computation (MPC) protocols split keys across parties, eliminating single failure points, as explained in bill summaries.
Reuters reports on July 12, 2023, that U.S. banks seek federal crypto custody clarity. Minnesota's HF 2845 provides state-level standards in the absence of uniform federal rules.
Market Context and Bank Adoption Trends
XRP rose 2.6% to $1.40 USD. BNB gained 1.4% to $625 USD. USDT stablecoin held at $1.00 USD. Spot Bitcoin exchange-traded funds (ETFs) managed $52 billion USD in assets as of April 15, 2026, per SEC ETF filings.
Inflows into spot BTC ETFs totaled $1.8 billion USD for the week ending April 12, according to Bloomberg data. Minnesota banks already custody ETF shares and some direct cryptocurrencies.
Rural Minnesota institutions use digital assets to hedge farm commodity risks, per Minnesota Bankers Association surveys. The St. Cloud crypto bank bill authorizes certifications for vendors including Fireblocks and Copper Co.
Fireblocks provides MPC-based custody solutions, securing over $3 trillion USD in transactions annually, per company disclosures. Copper offers institutional-grade cold storage.
John Pugh, CEO of the Minnesota Bankers Association, said: "Clear custody rules enable safe expansion into crypto services for community banks."
Legislative Progress and Timeline
The full Minnesota House debates HF 2845 starting April 22, 2026. A Senate companion bill, SF 1923 by Sen. Mark Koran, R-North Branch, advances in parallel.
Enforcement activates January 1, 2027. Non-compliance triggers fines up to 5% of affected assets. Banks must prepare for quantum-resistant encryption standards.
Federal Precedents and State Innovation
OCC Interpretive Letter 1170 from July 2021 permitted national banks to provide crypto custody. However, state-chartered banks like those in Minnesota faced regulatory ambiguity until HF 2845.
Neighboring states including Wisconsin and Iowa review similar proposals, per National Conference of State Legislatures records. Minnesota leads with specific multi-sig and audit mandates.
Implications for Minnesota Financial Sector
HF 2845 passage enables rural banks to offer crypto custody services. Cybersecurity fintech jobs could increase by 15% in St. Cloud over two years, per regional economic forecasts from the Minnesota Department of Employment and Economic Development.
Spot BTC ETFs and direct custody integrate digital assets into traditional banking. With BTC at $74,984 USD and the Fear & Greed Index at 23 on April 15, 2026, the St. Cloud crypto bank bill times market caution with regulatory clarity.
