- Connecticut bans state use of cryptocurrency, blocks public Bitcoin reserves.
- New law enforces strict crypto rules, mandates user protections.
- Platforms must give receipts, disclose asset custody, and protect minors.
Recently, Connecticut passed a major law that bans the state from using or investing in cryptocurrencies. This bill, known as HB 7082, prohibits the state and its local governments from accepting virtual currencies as payment or possessing any crypto assets. The new legislature, formally known as Public Act 25-66, will be enacted on October 1, 2025.
Connecticut Adopts Strict Crypto Stance, Enforces User Protections
To begin with, the bill introduces a clear legal definition of the term virtual currency based on the current state law. Such a broad definition encompasses the majority of cryptocurrencies, including Bitcoin and Ethereum. Therefore, the law puts a final seal on any future intentions of establishing a state-owned Bitcoin reserve.
Notably, the bill was unanimously passed in the Connecticut legislature with the support of both parties. This bipartisan approval has a very happy consensus that is against any state-sponsored crypto activity. Connecticut is one of the states that, unlike some others that are examining the application of digital assets, has decided to adopt a wait-and-watch attitude by being strict.
Along with prohibiting crypto investments, the law proposes a number of new regulations to companies dealing with cryptocurrency transactions. These are exchanges and applications that allow individuals to receive or send crypto. Detailed rules will now have to be observed by such companies in order to give greater protection to users.
New Law Mandates Receipts, Asset Custody Transparency in Crypto
First, these companies should make clear and understandable disclosures concerning the dangers of using crypto. Such warnings are supposed to be in English and must be displayed clearly to the users. They have to clarify such matters as changes in prices, the absence of insurance, and fraudulent risks.
Second, the customers should be provided with receipts, which show their transactions. They should also be aware of who specifically is possessing their assets. In case a company stores the crypto with the help of another business, this should be provided to the customer.
Third, the legislation provides additional safeguards to the minors. Connecticut Crypto platforms must now ensure that a parent or legal guardian consents before anyone under the age of 18 is allowed to create a crypto account. Such protection has never been incorporated into state law before.
Fourth, the law clarifies who owns digital assets. The virtual currencies stored in the possession of licensed companies are now deemed to belong to the customer. This implies that the customer is secure in the sense that should the company go bankrupt or be embroiled in a legal tussle, his or her rights are safeguarded.
State Aims to Boost Transparency, Protect Crypto Consumers
Due to these amendments, the crypto regulation in Connecticut has become quite similar to the conventional financial regulation. The state aims to raise consumer protection and bring crypto transactions into the limelight.
Conversely, several states in the U.S. are heading in a completely different direction. As an example, the state of New Hampshire enacted a bill that permits the establishment of a state Bitcoin reserve. The state of Texas has also been interested in Bitcoin as a means to diversify its financial portfolio. In the meantime, the state of Arizona is also considering such an idea.
These moves, however, are not favored by all states. In 2025, states such as Florida, Wyoming, South Dakota, and North Dakota stopped or withdrew crypto-related plans. They worry about crypto price volatility and the uncertainty around regulations.
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