Connecticut Bans State Crypto Use, Swiss Regulators Tackle Phishing Scams

In response to growing concerns in the digital asset space, authorities in both the United States and Switzerland have taken significant steps to address emerging risks. In Connecticut, Governor Ned Lamont has signed a bill into law that prohibits state agencies from accepting or holding cryptocurrency, marking a clear shift in policy away from public sector engagement with digital assets. This legislation, House Bill 7082, specifically restricts the state government from "accepting or requiring payment in the form of virtual currency" and from "purchasing, holding, investing in or establishing" any form of cryptocurrency reserve. The law is set to take effect on October 1, 2025, making Connecticut one of the first US states to formally enshrine such restrictions.

This move by Connecticut stands in stark contrast to federal initiatives and actions by other states. President Donald Trump's executive order earlier this year established a "Strategic Bitcoin Reserve" and a "Digital Asset Stockpile," aiming to expand the federal government’s digital asset holdings. Meanwhile, states like Texas, New Hampshire, Wyoming, and Florida are exploring or have already approved legislation to create state-managed cryptocurrency reserves. This divergence highlights a growing political rift around cryptocurrency policy, both at the federal and state levels.

In addition to banning crypto use in state transactions and reserves, HB 7082 updates licensing rules for crypto-related businesses operating in Connecticut. The legislation includes additional compliance requirements for money transmission licensees dealing in digital assets, further tightening the regulatory framework in a state known for its cautious approach to fintech innovation. These changes could impact crypto exchanges and fintech startups seeking to operate in Connecticut, potentially leading to an outflow of crypto-related business to more permissive jurisdictions.

Meanwhile, in Switzerland, regulators have directed Swissquote, the parent company of the crypto-enabled Yuh app, to address a surge in phishing and impersonation scams. The Swiss Financial Market Supervisory Authority (FINMA) issued the order after identifying a significant uptick in fake login portals and phishing attempts, particularly targeting users of the Yuh app. More than 600 fraudulent websites mimicking Swissquote's services were uncovered in the first half of 2025 alone. The Yuh platform, known for its accessibility to digital asset trading alongside traditional financial services, has become a popular gateway for newcomers to the crypto space, making it an attractive target for cybercriminals.

Swissquote CEO Marc Buerki confirmed that while none of the company’s internal systems had been breached, the rise in external impersonation and spoof websites poses a serious threat to user trust and platform integrity. FINMA emphasized that financial institutions operating in the digital asset space must go beyond securing internal systems—they must actively monitor and respond to external impersonation threats that could harm users and damage trust in the financial system. The regulator expects Swissquote to enhance its threat detection capabilities, improve user awareness programs, and cooperate with cybersecurity firms and international watchdogs to take down malicious websites more quickly. Failure to comply could result in penalties or further regulatory scrutiny.

This crackdown by Swiss regulators comes as phishing and impersonation schemes have become increasingly sophisticated and frequent, driven in part by artificial intelligence tools that enable scammers to generate more convincing fraudulent content at scale. According to cybersecurity firm CertiK, phishing, social engineering, and other scam vectors have accounted for approximately $2.1 billion in crypto losses so far in 2025. The majority of these losses stem not from technical flaws in blockchain code but from users being tricked into giving up sensitive information. Address poisoning, fake support messages, and deepfake videos are also becoming increasingly popular with scammers, highlighting the need for enhanced security measures and user awareness in the digital asset space.