Minnesota Resumes Bullion Dealer Registrations Following Court Direction in Landmark Civil Rights Case

This follows court direction stemming from a federal lawsuit filed in 2020 that challenged the constitutionality of Minnesota’s controversial bullion-dealer law.

The lawsuit—Thomas John Styczinski, et al. v. Grace Arnold, Commissioner of the Minnesota Department of Commerce—was brought by small business investors, hobbyist coin collectors, and dealers who argued the law criminalized ordinary investment activity. Plaintiffs contended that the law placed undue burdens on small-scale bullion traders while protecting large telemarketing firms, thereby stifling competition and interstate commerce.

In August 2022, the US Court of Appeals for the Eighth Circuit issued an opinion in favor of plaintiff Tom Styczinski, operator of Tom “The Coin Guy,” LLC. The court’s decision prompted the Department of Commerce to suspend regulatory enforcement of Chapter 80G, during which time all registrations under the law lapsed. Last month the court found that the extraterritorial portions of the law were unconstitutional but that dealers selling in Minnesota or to Minnesota residents are still bound by the registration requirement.

With new direction from the court, the department is preparing to resume registration activities. Dealers who meet the requirements of Chapter 80G may begin submitting applications through Sircon, the state’s new licensing system administered by Vertafore, starting July 23. Licensee data from the previous PULSE system will be migrated to Sircon.

To help affected businesses understand the new registration process, Vertafore is hosting a live demonstration of Sircon on July 22 at 10:00 a.m. Central Time, ahead of the system’s official activation.

The 2013 statute had long been the subject of criticism for its sweeping and onerous requirements, including mandatory registration, extensive disclosures, and surety bonds of up to $25,000—even for individuals conducting personal bullion transactions, if those transactions total more than $25,000 per year. Plaintiffs described the law as “draconian” and discriminatory, especially when compared to the regulatory treatment of other collectibles and alternative investments.

“This law effectively criminalized ordinary investing and collecting,” said Styczinski. “It drove away out-of-state dealers and made it impossible for many Minnesotans to participate in the national bullion market.”

The National Coin & Bullion Association (NCBA), while not a named plaintiff in the case, closely monitored the litigation. NCBA had previously engaged in cooperative efforts with the Department of Commerce to amend the law and has publicly supported efforts to bring Minnesota’s bullion regulations into alignment with federal commerce standards.

As registration resumes, the future of the underlying law remains uncertain. While the court’s decision has prompted procedural updates, industry advocates continue to push for legislative reforms or a repeal to ensure that Minnesota’s numismatic community and bullion investors are no longer subject to disproportionate regulation.

For more information about the new registration process, visit the Minnesota Department of Commerce website at https://mn.gov/commerce or the Sircon system at https://www.sircon.com/landingPages/states/minnesota/otherBiz/content.jsp.