Connecticut lawmakers vote to prohibit crypto use in government

Connecticut lawmakers have unanimously passed House Bill 7082, which prohibits the state and all local government divisions from purchasing, holding, investing in, or establishing reserves of virtual currency.

The bill also bans accepting cryptocurrency payments by any part of the state government. This legislation marks Connecticut as one of the few U.S. states explicitly rejecting the idea of crypto asset reserves, in contrast to states like New Hampshire, Texas, and Arizona that are moving forward with such initiatives.

The bill received bipartisan support, passing with 148 votes in favor and none opposed in the latest vote. It was primarily driven by Democratic lawmakers and reflects concerns over cryptocurrency volatility and regulatory issues, as well as political opposition linked to former President Donald Trump’s association with digital assets.

In addition to banning crypto investments and payments by government entities, the law tightens regulations on crypto firms operating under Connecticut’s money-transmitter license, requiring licensing and imposing disclosure requirements that could increase compliance costs for private sector crypto businesses.

This move runs counter to the broader U.S. trend where many states are establishing strategic Bitcoin reserves or exploring digital asset integration in public finance, following a federal directive from President Trump in March 2025 to create a bitcoin reserve at the national level.

Connecticut’s cautious stance signals a symbolic opposition to cryptocurrency adoption within government operations, potentially limiting innovation but reflecting the state's legislative priorities.

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