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Cryptocurrency laws around the world are continuously evolving to address issues in the sector. Many regulators are working behind the scenes to create supportive laws, especially in regions that consider crypto important. In the US, individual states have varying requirements for crypto users and service providers, with some more supportive than others. Even though the Securities and Exchange Commission (SEC) has been criticized for its seeming preference for enforcement action instead of regulatory clarity, some states are gradually defining clear rules on what is applicable for cryptocurrency within their borders.

Crypto adoption in Minnesota is rising as several businesses are now accepting digital asset payments. Last year, major retailers like Whole Foods, Home Depot, and Starbucks began to accept crypto payments at checkout. As adoption rises, more businesses, especially online services like crypto betting sites, would welcome an increasing number of customers as they open up to a broader audience. For betting sites, Minnesota gamblers are likely to follow the trend recorded worldwide, where the number of crypto bets is on the rise. Notably, the estimated global casino market value by the end of 2023 is $263.3 billion.

Generally, the state is gradually becoming more accepting of cryptocurrency. In 2019, the House introduced HF 2884, which forbade politicians, political parties, campaign committees, and party units from accepting cryptocurrency donations or contributions. However, Minnesota updated the law in July, allowing campaigns and politicians to receive virtual currency donations. Nonetheless, the law requires recipients to convert all crypto donations to US dollars within five days. Although there is some worry about accountability and transparency, the new law opens the state’s political environment to a broader range of donors, gradually making the campaign playing field more even.

Whether or not Minnesota officially views cryptocurrency as money is unclear. At the moment, major exchanges like Gemini, Binance, and Coinbase all have Money Transmitter Licenses and are all legally allowed to handle money. However, these permissions may only cover fiat transactions, not digital assets. Unfortunately, current Minnesota Money Transmitter laws do not account for “virtual currencies” or refer to instruments with “monetary value.” In addition, there is no guidance on crypto regulations from the state’s Commerce Department.

In general, the state may not actively be trying to become a crypto hub. In 2019, the House introduced HF 2208, which sought to include “virtual currency” as part of “unclaimed property” laws in the state. Unfortunately, this provision was removed from the bill following several amendments and revisions. However, HF 2538 was introduced in 2021, which specifically includes virtual currency in the state’s definition of property.

Many of these bills have been abandoned without updates or further hearings. Although cryptocurrency usage is legal in Minnesota, the lack of clear, supportive regulations may tell strongly on the sector. Currently, the Commerce Department’s page on cryptocurrencies warns readers that these assets “may be nothing more than public facing fronts for Ponzi schemes and other frauds.” The page also expressly states that virtual currencies and related products are not equivalent to traditional securities, insurance, investment, or banking products.