Connecticut Bans Bitcoin in State Agencies, Imposes Strict Rules

• Connecticut bans public agencies from using Bitcoin
• Law requires crypto companies to disclose risks
• US states differ on cryptocurrency adoption

The state of Connecticut has adopted one of the most restrictive stances on institutional cryptocurrency use in the United States. On June 30, Governor Ned Lamont sanctioned Bill 7082, which prohibits state agencies from investing in Bitcoin or any other digital asset, in addition to preventing the acceptance of these assets as a form of payment for financial obligations to the state.

🚨JUST IN:

Connecticut bans a state Bitcoin reserve.

State and local governments are now banned from investing in or accepting cryptocurrencies — including Bitcoin — under HB7082, which takes effect July 1.

Separately, HB6990 broadens the scope of asset forfeiture to include… pic.twitter.com/GrYTxc4QNV

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The new legislation also imposes strict obligations on companies operating in the crypto sector within the state. Companies involved in the transmission of virtual currencies must now clearly disclose all relevant risks to users. This includes warnings about irreversible transactions, threats of fraud, and social engineering attempts involving false identities, data hijacking or manipulation of victims into purchasing cryptocurrencies.

The legal text requires, for example, that consumers be informed that “virtual currency transactions are irreversible and are used by people seeking to defraud customers, including, but not limited to, a person posing as a customer’s loved one […] or claiming that a customer’s personal computer has been hacked.”

The measure was unanimously approved by the state's General Assembly and represents a clear break with the movement seen in other regions of the US, which are moving in the opposite direction. In Texas, the governor recently signed legislation that authorizes the state to create a public reserve of Bitcoin, using state resources. Similar initiatives have also been registered in Arizona and New Hampshire.

According to recent data, 48 bills related to the creation of public cryptocurrency reserves are currently under consideration in different US states. Eight of them have already passed specific legislation, reflecting a growing divide in state approaches to the role of crypto in public finances. While some see Bitcoin as a hedge and diversification asset, others, such as Connecticut, consider the risk too high to justify state involvement.