Connecticut Enforces HB7082: State Treasury Banned from Crypto Transactions

Connecticut distances itself from governmental involvement in cryptocurrency by unanimously passing HB7082, now known as Public Act No. 25-66, marking a broad state-level prohibition on government-related crypto activities. The legislation prevents all state and municipal entities from setting up cryptocurrency reserves or accepting digital assets for payments, effectively stopping potential state-backed crypto projects.

The law also sets strict protections for consumers of virtual currency services. It requires companies to display warnings about the irreversible nature of transactions and potential unrecoverable losses. They must also disclose all major risks to customers and confirm the identities of users below 18 years of age. Additionally, the legislation revises the state's overall financial oversight laws, introduces new digital finance terms, and mandates crypto businesses in Connecticut to adopt enhanced compliance programs.

This approach starkly contrasts with the 31 states currently contemplating Bitcoin reserve bills.