Connecticut Bans State Crypto Transactions Amid National Adoption Trend

Connecticut has taken a significant step in regulating cryptocurrencies by enacting a law that prohibits the state and its political subdivisions from engaging in any form of digital asset transactions. Governor Ned Lamont signed House Bill 7082 into law on June 30, 2025, following its passage through the state legislature. The bill, introduced in February 2025, was co-sponsored by several Democratic lawmakers, including Rep. Kenneth Gucker and Senators Patricia Miller and Matthew Lesser. It received strong support, passing the House with a 105-42 vote and being unanimously approved by both chambers of the General Assembly.

The legislation is a direct response to the growing concerns over the volatility and lack of regulatory clarity surrounding virtual currencies. The bill explicitly states that the state and its political subdivisions are prohibited from accepting or requiring payment in virtual currency, as well as from purchasing, holding, investing in, or establishing a reserve of virtual currency. This move by Connecticut stands in contrast to the national trend of increasing crypto adoption. For instance, Texas recently established the Texas Strategic Bitcoin Reserve, the first publicly funded reserve of its kind, and other states like Arizona and New Hampshire are advancing similar efforts.

The reaction to Connecticut's new law has been mixed. Some industry analysts view the ban as a prudent measure given the absence of federal regulation, while others see it as a setback for the growing crypto industry. The ruling highlights the ongoing debate within the United States regarding how government agencies should manage the risks and potential of cryptocurrencies. As the debate continues at both state and federal levels, Connecticut's move is likely to influence the development of crypto policies in other states. The legislation underscores the need for clear regulatory frameworks to address the challenges posed by digital assets, setting a precedent for how other jurisdictions might approach this evolving landscape.