Connecticut Bans Bitcoin Investments by the State—While Others Race to Build Crypto Reserves
The post Connecticut Bans Bitcoin Investments by the State—While Others Race to Build Crypto Reserves appeared on BitcoinEthereumNews.com.
Key Takeaways: Connecticut has officially passed a bill banning all state and local government investments in Bitcoin and other cryptocurrencies. The new legislation also prohibits the creation of a strategic reserve of digital assets, going against a growing trend in other U.S. states. Tighter rules for crypto businesses now include mandatory disclosures, AML compliance, and restrictions for users under 18. In a significant turn away from the rising tide of state-level crypto adoption, Connecticut has taken a firm regulatory stance by passing a bill that bars government entities from investing in digital currencies. The move contrasts sharply with states like New Hampshire, Texas, and Arizona, which are actively exploring or have enacted Bitcoin reserve policies. Connecticut’s Blanket Ban on State Crypto Investments The legislation—Substitute for Raised H.B. No. 7082, now Public Act No. 25-66—clearly prohibits any state or municipal entity in Connecticut from purchasing, holding, or investing in virtual currencies, including Bitcoin. It also blocks these entities from accepting crypto as a form of payment or creating any crypto reserves. This legislative move appears to be preemptive, preventing any future scenario in which public funds could be used to speculate on volatile crypto assets. Under the bill: The state treasury, local governments, and public agencies cannot hold or transact in crypto assets. All levels of government are banned from creating a Bitcoin reserve, despite growing national momentum for doing exactly that. This comes at a time when several states have framed Bitcoin as a hedge against inflation or a long-term store of value—a notion Connecticut lawmakers are firmly rejecting. Read More: Texas Proposes Strategic Bitcoin Reserve Amid Push for Crypto Sovereignty Key Crypto Compliance Mandates for Businesses in Connecticut While the investment ban made headlines, the legislation goes further by imposing strict requirements on crypto money transmission businesses operating in…
