Connecticut has enacted legislation that prohibits state investment in digital currencies, specifically barring the establishment of a strategic Bitcoin reserve. This new law aims to safeguard public funds from the risks associated with cryptocurrency.
The bill, designated H.B. 7082, was released by the Connecticut General Assembly on Tuesday and received unanimous approval from both the state House of Representatives and Senate, with no dissenting votes noted.
Additionally, the legislation introduces updates to the state’s money transmission laws with a pronounced emphasis on regulating cryptocurrency. Businesses involved in cryptocurrency transactions will now be required to disclose any material risks, as stipulated by the new law.
NEW: Connecticut passes law to ban state investment in bitcoin.
HB7082 prohibits the state from accepting, holding, or investing in any virtual currencies.
It also imposes several new requirements on money transmitters. pic.twitter.com/lKozljMp1R
— Bitcoin Laws (@Bitcoin_Laws) June 10, 2025
Connecticut’s regulatory move is part of a wider initiative aimed at overseeing crypto-related activities at the state level, ensuring that public funds are protected from the inherent risks of speculative investments.
Moreover, the bill introduces measures for verifying the legal guardians of users under 18, thereby enhancing protections for minors engaging with digital assets.
Connecticut Falls Out of Bitcoin Reserve Race
In the context of statewide Bitcoin reserve discussions, Connecticut’s decision comes as 27 states have proposed similar measures. Notably, New Hampshire, Arizona, and Texas have successfully passed legislation to establish state-level Bitcoin reserves.
For example, Texas, which experiences a “significant budget surplus,” sees the establishment of a strategic Bitcoin reserve as a forward-looking investment. Lee Bratcher, President of The Texas Blockchain Council, remarked on the opportunity it presents, highlighting Bitcoin’s potential as a long-term store of value that aligns with the state’s history of strategic investments.
Conversely, Florida has opted to withdraw from crypto legislation initiatives this year, joining several other states such as Wyoming, South Dakota, North Dakota, Pennsylvania, Montana, and Oklahoma in hesitating to embrace the digital currency.
The reluctance to adopt Bitcoin is largely influenced by concerns regarding its price fluctuations and its long-term suitability as a reliable reserve asset.
At the federal level, former President Donald Trump signed an executive order aimed at establishing a strategic Bitcoin reserve, a significant maneuver which lacked precise details and ultimately failed to invigorate trader enthusiasm.
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