Connecticut prohibits state officials from using Bitcoin and other cryptocurrency assets, while tightening regulations on the storage, trading, and exchange of cryptocurrencies in the state.
MAIN CONTENT
Connecticut enacts a law prohibiting public officials from using Bitcoin and cryptocurrencies starting October 1, 2025.
The law requires cryptocurrency businesses to be licensed, comply with anti-money laundering regulations, and protect users, especially minors.
Connecticut's move contrasts with other states like Texas and Arizona, which are creating Bitcoin reserve funds to develop digital finance.
What does Connecticut's law prohibit regarding cryptocurrencies?
Connecticut's new law, signed on June 30, 2025, strictly prohibits public officials in the state from using Bitcoin and other cryptocurrency assets, while also banning the storage, exchange, and trading of cryptocurrencies within the state. This is a tough move aimed at controlling cryptocurrency activities.
According to House Bill 7082 (or Public Act 25-66), cryptocurrency businesses must apply for a license from the Connecticut State Banking Commission and must also clearly warn customers of risks, issue transaction receipts, and strictly comply with anti-money laundering regulations. Transactions for minors require parental consent.
The imposition of strict laws to protect assets and citizens from potential risks arising from unchecked cryptocurrency trading.
Governor Ned Lamont, Governor of Connecticut, 2025
What motivated Connecticut to enact strict laws?
The law was passed by the Connecticut State Legislature with an absolute vote of 148–0 in the House and 36–0 in the Senate, showing strong consensus. According to many experts, the Democratic Party's dominance in the state, coupled with their criticism of former President Trump's involvement with memecoins and cryptocurrency finance, was a driving factor in hastening this process.
With the law presented to the Banking Commission in February 2025 and taking effect from October 1, 2025, the clear goal is to avoid financial risks that could negatively impact public funds as well as citizens, especially vulnerable groups such as minors.
"The law aims to protect citizens from volatility and fraudulent schemes in the cryptocurrency space, although we also need to consider not harming innovation."
Aaron Brogan, Cryptocurrency Lawyer, 2025
What is the community's and other states' reaction?
Many investors and experts in the cryptocurrency industry disagree with the law, arguing that it could stifle innovation in the rapidly developing fintech sector. Some suggest this may only be a temporary move and the state will soon adjust its policies based on actual impacts.
In contrast to Connecticut, Texas has passed a law allowing the creation of a Bitcoin reserve fund with an initial budget of $10 million to respond to financial volatility and invest for the future of the digital economy. Arizona and New Hampshire also have similar policies, actively developing cryptocurrency finance to keep up with global trends.
State Cryptocurrency Policy Budget/Fund Main Objective Connecticut Prohibits state officials from using Bitcoin and cryptocurrencies, tightens regulation of cryptocurrency businesses No Protect citizens from risks, anti-money laundering Texas Allows the creation of a $10 million Bitcoin reserve fund Stabilize finances, combat inflation, long-term investment Arizona Bitcoin reserve fund and cryptocurrency assets Not disclosed Keep up with new technologies, harness digital potential New Hampshire Supports the use of cryptocurrency assets, laws support innovation Not disclosed Increase financial freedom, promote creativity
Frequently Asked Questions
1. How does Connecticut's law affect cryptocurrency businesses? Businesses must register for a license, comply with anti-money laundering regulations, issue risk warnings, and restrict transactions for minors. 2. When does the law take effect? The law takes effect on October 1, 2025, throughout the state of Connecticut. 3. Why did Connecticut choose a prohibitive path instead of developing a Bitcoin reserve fund? The state prioritizes protecting public funds and citizens from high volatility and fraud; different from states that choose to invest in cryptocurrencies to develop finance. 4. Is there a possibility that Connecticut will change the law in the future? Many cryptocurrency experts and lawyers believe that the state may adjust its policies based on actual impacts after a few years. 5. How do Connecticut's neighboring states handle cryptocurrencies? Texas, Arizona, and New Hampshire actively use cryptocurrencies in reserve funds and policies to promote digital finance.
Source: https://tintucbitcoin.com/thong-doc-connecticut-cam-dung-bitcoin/
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