Minnesota State Representative Bernie Perryman announced on May 1 that the House has passed a bill allowing banks and credit unions to hold virtual currency for customers if they choose to offer this service. The legislative session is set to end in 16 days, with several bills already passed and more work ahead.
The passage of the virtual currency bill, known as H.F. 3709, aims to keep Minnesota’s financial services industry competitive with other states. Perryman said the bill is necessary because federal regulators have clarified that banks can provide cryptocurrency custody services but state law must authorize state-chartered institutions to participate. She emphasized that “this bill is narrow and focused on custody, not investment or trading and, again, banks and credit unions do not have to participate if they don’t want to.”
Perryman also discussed her opposition to a proposed bill (H.F. 5077) introduced by House Democrats that would reduce local government aid by ten percent for cities or counties flying Minnesota’s former state flag instead of the new design adopted in 2024. She said, “LGA is a critical funding source that helps communities pay for essential services like police and fire protection. Using it as leverage to coerce communities or impose penalties puts unnecessary strain on local governments and, ultimately, taxpayers.” Perryman called the proposal an unfunded mandate.
Additionally, she reported testimony from Jay Swanson, a former criminal investigator for the Child Care Assistance Program under the Minnesota Department of Human Services (DHS). Swanson told lawmakers that oversight could have prevented some current fraud concerns tied to the program before his unit was shut down in 2019. He described widespread fraud at DHS starting in 2017 and alleged internal pressure from superiors during investigations.
Federal officers recently served warrants on suspected fraudulent Medicaid providers in Minnesota following whistleblower warnings about ongoing issues within DHS programs. Perryman said it was encouraging “to see federal law enforcement is now providing accountability on fraud where the Walz administration hasn’t,” adding that “Minnesota taxpayers deserve accountability, and we are finally beginning to see it.”
Perryman concluded by encouraging constituents to follow legislative developments through official pages and reach out with their thoughts during this session.
