Connecticut enacts law banning state crypto reserves, investments

Connecticut has passed legislation barring the state and local governments from investing in crypto or establishing a crypto reserve.

The Connecticut General Assembly published the final text of the bill on Tuesday. The bill, H.B. 7082, passed both the House and the Senate unanimously without dissent. The bill has now become Public Act No. 25-66, according to the official website of the Connecticut General Assembly.

The new legislation bars government entities from buying, holding, or investing in crypto assets, while also forbidding them from "establishing a reserve of virtual currency" or accepting crypto payment.

The bill also requires crypto businesses that engage in money transmission to disclose all material risks associated with crypto in "clear, conspicuous and legible writing in the English language." It further imposes protections for minors, requiring legal guardian verification for users under the age of 18.

While Connecticut now explicitly bans a state crypto treasury, several other U.S. states are actively pursuing strategic bitcoin reserves. Last month, New Hampshire became the first state to pass a strategic bitcoin reserve bill, with Arizona quickly following suit.