Connecticut Bans State Agencies From Holding Cryptocurrencies

On June 30, 2025, Connecticut Governor Ned Lamont signed House Bill 7082 into law, implementing a significant policy change that prohibits all state agencies from investing in or accepting virtual currencies, including Bitcoin. This legislation marks Connecticut as the first state in the U.S. to completely ban government entities from holding any cryptocurrencies.

The bill, introduced in February 2025, was co-sponsored by several Democratic lawmakers, including State Representative Kenneth Gucker, Senators Patricia Miller and Matthew Lesser, and Representative Jason Doucette. It received substantial support, passing the House on May 14 with 105 votes in favor and 42 against, and was unanimously approved by the Connecticut General Assembly on May 30, with votes of 148-0 in the House and 36-0 in the Senate. Governor Lamont’s signature on June 30 finalized its enactment.

House Bill 7082 includes comprehensive consumer protection measures. It mandates that businesses engaging in virtual currency transactions must disclose potential risks, such as the non-recoverability of losses, lack of government backing or insurance, and the irreversibility of transactions. Virtual currency kiosk operators face strict compliance requirements, including verifying customer identities, preventing the use of high-risk or sanctioned wallets, and limiting the amount customers can transact daily. New customers are subject to daily transaction limits of $2,000 while existing customers can transact up to $5,000. Kiosks must also offer live customer support and implement measures to prevent fraud. Furthermore, businesses must employ a full-time compliance officer to ensure adherence to proper regulations.

This move by Connecticut contrasts sharply with the growing trend of cryptocurrency adoption in other U.S. states. In late June 2025, Texas Governor Greg Abbott signed Senate Bill 21, authorizing the establishment of Bitcoin and digital asset reserves. Texas is the first state to actively finance the reserve through public funds. Meanwhile, Arizona’s lawmakers recently revived a bill that seeks to create a Bitcoin and Digital Assets Reserve Fund, signaling a broader trend of state-level adoption.

Internationally, the momentum for cryptocurrency reserves is also growing. The National Bank of Kazakhstan is exploring the creation of a state crypto reserve, and Pakistan has announced plans to establish a Bitcoin reserve. These developments reflect a global shift toward integrating digital assets into national financial frameworks.

The ban on state investment in virtual currencies in Connecticut is a significant policy move that highlights the state's cautious approach to digital assets. While other states and countries are embracing cryptocurrencies as part of their financial strategies, Connecticut's legislation underscores the need for comprehensive consumer protection measures and strict regulatory oversight. This policy shift is likely to influence other states and regions as they navigate the complexities of digital asset regulation.