Connecticut Bans Public Officers From Using Bitcoin

Connecticut Governor Ned Lamont has signed a bill prohibiting public officers from using Bitcoin and other crypto assets. The legislation, known as House Bill 7082 or Public Act 25-66, was passed unanimously by the state House and Senate, with votes of 148-0 and 36-0, respectively. The bill, which was referred to the House Committee on Banking in February 2025, was signed into law on June 30th and will take full effect from October 1st, 2025.

The new law introduces stringent regulations for crypto businesses operating within the state. Any entity involved in trading virtual currencies, including crypto transactions, digital wallets, and Bitcoin exchanges, must obtain a license from the State Banking Commissioner. These entities are also required to provide clear risk warnings to consumers, issue receipts after each transaction, and adhere to anti-money-laundering rules. Additionally, if minors are allowed to trade, parental consent must be obtained beforehand.

Connecticut's conservative approach to crypto and Bitcoin investments contrasts with neighboring states that support creating a Bitcoin reserve to hold a portion of their wealth. Supporters of the law argue that it aims to protect users from the volatility of cryptocurrencies, particularly for underage individuals, and to safeguard the state's financial resources from unnecessary risks. However, industry enthusiasts express concerns that the law could stifle innovation in the growing crypto industry. Some critics describe the move as potentially harmful to taxpayers and believe the state may reverse its decision in the coming years as it evaluates the costs.

Connecticut's decision to ban government involvement in cryptocurrency stands in contrast to other states that have embraced digital finance. For instance, Texas recently passed Senate Bill 21, allowing the state to create a strategic reserve for Bitcoin and allocating $10 million to this reserve. Texas lawmakers view this move as preparing the state for the future of digital finance, protecting funds from inflation and instability, and fostering long-term financial growth. Similarly, Arizona and New Hampshire have enacted laws to establish strategic Bitcoin and digital assets reserve funds, aiming to stay ahead of technological advancements and promote financial freedom through digital assets.