Connecticut Bans State Digital Asset Investments

Connecticut has implemented a comprehensive ban on state-level investments in digital assets, marking a significant policy shift that contrasts with the broader trend of cryptocurrency adoption in other U.S. states. Governor Ned Lamont signed House Bill 7082 into law on June 30, 2025, which prohibits state agencies and political subdivisions from accepting, holding, or investing in virtual currencies. This legislation was introduced in February 2025 and received substantial bipartisan support, passing the House with 105 votes in favor and 42 against on May 14, and unanimously approved by the Connecticut General Assembly on May 30 with votes of 148-0 in the House and 36-0 in the Senate.

The new law explicitly states that neither the state nor any of its political subdivisions shall accept or require payment in the form of virtual currency for an amount due to the state or the political subdivision, nor shall they purchase, hold, invest in, or establish a reserve of virtual currency. This move positions Connecticut as an outlier in the U.S., where several states are embracing digital assets as part of their financial strategies. The legislation was co-sponsored by several Democratic lawmakers, including State Representative Kenneth Gucker, Senators Patricia Miller and Matthew Lesser, and Representative Jason Doucette, reflecting a bipartisan effort to regulate digital assets.

In addition to the investment ban, the new law introduces comprehensive consumer protection measures. 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 policy shift in Connecticut contrasts with the actions of other states. In late June 2025, Texas authorized the establishment of Bitcoin and digital asset reserves 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, with the National Bank of Kazakhstan exploring the creation of a state crypto reserve, and Pakistan announcing plans to establish a Bitcoin reserve. These developments reflect a global shift toward integrating digital assets into national financial frameworks.

The enactment of House Bill 7082 in Connecticut underscores the state's cautious approach to digital assets, prioritizing consumer protection and regulatory compliance over potential financial gains. This decision may influence other states and regions to reconsider their policies on digital asset investments, highlighting the ongoing debate over the role of cryptocurrencies in modern financial systems. Analysts suggest that this ban creates new barriers for crypto-related firms considering Connecticut as a base, potentially impacting job creation and technological growth in the state. Governor Lamont’s legacy of consumer protection is reinforced by this move, which may deter financial and tech businesses from engaging with the state's digital asset market.