Connecticut has banned all state agencies from using or investing in any form of cryptocurrency including Bitcoin.
The law imposes strict limits on crypto kiosks and requires full-time compliance officers to oversee operations.
This move sets Connecticut apart as other states and countries continue to embrace digital assets for public use.
Connecticut has officially banned its government from holding or investing in cryptocurrencies, including Bitcoin. Governor Ned Lamont signed House Bill 7082 into law, finalizing the move on June 30. The bill aims to shield public funds from the perceived risks tied to virtual currencies.
https://twitter.com/Cointelegraph/status/1939866593468530782 Clear Majority Backed the Legislation
The bill, which was proposed in February 2025, gained much Democratic legislative support. It was passed with a great majority in both houses. It was passed by the House by 105 votes to 42. Subsequently, it was unanimously endorsed by the General Assembly. Final approval was passed by the Senate in a vote of 36-0 and by the House in a vote of 148-0.
Scope of the Ban and Key Restrictions
The new law bars state agencies and political subdivisions from using, investing in, or holding any form of virtual currency. It prohibits payment to the state using digital assets. The state also cannot maintain a reserve in cryptocurrency.
The legislation includes strict consumer protection measures. Businesses handling virtual currencies must warn users of financial risks. These include price volatility, lack of insurance, and the irreversibility of transactions.
Tighter Oversight for Kiosk Operators
The law imposes tighter rules on virtual currency kiosks. Operators must verify customer identities and prevent use of high-risk wallets. New customers face a $2,000 daily limit. Existing customers have a $5,000 daily cap.
Kiosk operators must also provide live customer support. They are required to appoint full-time compliance officers. These officers ensure all transactions meet the state's regulatory standards.
Connecticut Breaks from National and Global Trend
This decision makes Connecticut an outlier. Most states are adopting more open digital asset policies. Texas, for instance, approved a $10 million Bitcoin reserve funded by public money. Arizona and New Hampshire also moved toward building crypto reserves.
On the global front, Kazakhstan and Pakistan are exploring or establishing their own state-run Bitcoin reserves. These efforts point to a broader push for national-level digital asset integration.
Lawmakers Cite Volatility and Risk Concerns
Supporters of the bill point to crypto's price instability and regulatory uncertainty. They argue public funds should not face exposure to those risks. The law signals a shift toward conservative fiscal policy in digital finance.
Connecticut’s law could influence other cautious states. It sets a precedent as U.S. states weigh the balance between innovation and stability.
