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Connecticut bans all state and local governments from investing in or accepting crypto
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Law introduces strict consumer warnings and full risk disclosures
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Contrasts with ongoing Bitcoin reserve bills in 16 U.S. states
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Includes major reforms to state money transmission and licensing laws
Connecticut Becomes First State to Fully Reject Public Crypto Holdings
Connecticut has enacted the most restrictive state-level crypto legislation in the U.S., banning all public-sector involvement in virtual currencies. The new law prevents state and local agencies from investing in, holding, or accepting crypto payments, effectively blocking any future Bitcoin reserve strategies.
Bold Move Amid Rising Interest Nationwide
The law runs counter to national trends. Across the U.S., 31 active proposals are exploring Bitcoin reserves or government crypto initiatives, with 16 states moving forward on legislation. Connecticut now stands firmly on the opposing side of the debate, emphasizing regulatory caution over financial experimentation.
Robust Consumer Protections Introduced
The law mandates that all crypto-related businesses display prominent fraud warnings and fully disclose risks to consumers. It also introduces strict identity verification requirements, especially for minors, and forces money transmitters to follow updated compliance frameworks.
Redefining How Crypto is Handled in the State
House Bill 7082, now Public Act No. 25-66, redefines how Connecticut regulates digital wallets, kiosks, and control persons. By combining a total government investment ban with detailed consumer safeguards, the state has set a precedent for cautious crypto governance nationwide.
