- Connecticut passed a law banning all government use of crypto—no holding, buying, or accepting it.
- The law updates money transmission rules to tightly regulate crypto businesses.
- Unlike other states exploring limited crypto reserves, Connecticut is going full no-go.
Well, that’s it—Connecticut officially wants no part of Bitcoin. On Monday, Governor Ned Lamont signed House Bill 7082 into law, and it’s about as anti-crypto as legislation gets. No buying, no holding, no investing, no paying taxes with it—nothing. Basically, if it’s digital currency, the state wants no involvement.
This new law puts Connecticut on a pretty short list of U.S. states saying “no thanks” to government crypto exposure. And it’s not just Bitcoin getting iced out—Ethereum, stablecoins, and other digital tokens are covered too. The law defines “virtual currency” pretty broadly, so nothing slips through the cracks.
What’s in the Fine Print?
At the core of it is Section 5 of HB 7082. It clearly spells out that neither the state nor any of its towns and cities can accept or use crypto for anything—not for payments, not for tax collections, and definitely not for investing or holding reserves.
The bill also digs into the nitty-gritty of digital finance. It updates money transmission laws to cover stuff like crypto wallets, kiosks, and custodians. If you’re running a crypto business and handling digital assets for customers, you’ll need a license—unless you’re a bank or a credit union, of course.
There are tighter guardrails now too. Companies must keep full reserves (1:1) for customer assets, use only approved custodians, and stick to tougher disclosure rules. This isn’t a light touch—Connecticut’s bringing out the heavy regulatory playbook.
Not the Only State With Crypto Reservations
Interestingly, this move contrasts with Arizona’s crypto path. Back in May, Arizona’s Governor Katie Hobbs vetoed a bill that would’ve greenlit state Bitcoin investments—but she did approve another that allows the state to hold crypto it earns from things like staking or airdrops. So, more of a toe-dip approach.
Connecticut, meanwhile, went full cannonball in the opposite direction—banning not just investments but even the possibility of using digital assets for payments. No blockchain-powered tax bills here anytime soon.
The Bottom Line
While some states flirt with the idea of building crypto reserves, Connecticut just took a big step back. With HB 7082 now law, the message is loud and clear: digital currency has no role in state finances—for now, at least.
