Connecticut has officially drawn a line in the sand when it comes to government involvement in cryptocurrency. In a unanimous vote, the state’s legislature passed a bill that prohibits state and local governments from investing in or holding digital assets. The law also bans the establishment of a crypto reserve or accepting cryptocurrency as payment.
The legislation—House Bill 7082—was signed into law as Public Act No. 25-66, following approval from both chambers of the Connecticut General Assembly without a single vote of opposition. The final text of the bill was published Tuesday on the Assembly’s official site.
Under the new law, public entities in Connecticut are barred from buying or holding any cryptocurrency, including forming a treasury or reserve of virtual currency. The legislation also places new disclosure obligations on crypto firms operating in the state. Companies that handle money transmission involving digital assets must now clearly outline all material risks in plain English.
In an effort to protect younger users, the law also requires age verification and legal guardian approval for individuals under 18 who wish to engage with crypto platforms.
Connecticut's decision contrasts sharply with a growing trend in other parts of the U.S., where some states are moving in the opposite direction. Just last month, New Hampshire made headlines by passing a bill to establish a strategic bitcoin reserve, becoming the first state to do so. Arizona soon followed with similar legislation.
