Connecticut lawmakers delivered a unanimous blow to crypto adoption this week, passing legislation that prohibits the state and local governments from investing in, accepting payments, or holding digital assets.
The move places Connecticut among a growing list of US states explicitly rejecting Strategic Bitcoin Reserve proposals, even as federal lawmakers advance pro-crypto legislation in Washington.
Sweeping Crypto Ban
House Bill 7082, officially titled “An Act Concerning Various Revisions to the Money Transmission Statutes, State Payments and Investments in Virtual Currency,” sailed through both chambers without opposition before being signed into law.
The legislation, introduced in February by the Connecticut House Banking Committee and co-sponsored by State Representative Kenneth Gucker and Senators Patricia Miller and Matthew Lesser, goes beyond simple investment restrictions.
The bill explicitly prohibits establishing any strategic reserve, stating that “Neither the state nor any political subdivision of the state shall establish a reserve of virtual currency.” This language directly targets proposals similar to those floated in other states, where lawmakers have pushed for government entities to allocate portions of their portfolios to Bitcoin and other crypto.
Beyond the investment ban, HB 7082 significantly expands Connecticut’s money transmission framework. The legislation broadens the definition of money transmission to include digital wallets and crypto kiosks, while imposing strict licensing, compliance, and disclosure requirements on businesses that hold, transmit, or store virtual currency for others. Money-sharing apps now face restrictions on opening accounts for minors without verified parental consent, and must make such accounts and data deletable upon request.
Connecticut’s crypto crackdown follows the failure of a separate bill that would have established a comprehensive Web 3.0 framework and created a dedicated task force to oversee emerging digital technologies. The state appears determined to maintain distance from the digital asset sector.
States Split On Crypto
Connecticut joins Utah in stepping back from crypto-friendly policies. Utah’s House Bill 230, passed in March, originally included provisions allowing state investment in digital assets but ultimately scrapped those clauses.
Arizona took a different approach—lawmakers passed Strategic Bitcoin Reserve legislation only to see Governor Katie Hobbs veto it, arguing crypto assets were too “untested” for the state’s retirement fund. The vetoed bill would have permitted public funds to invest up to 10% of assets under management in digital assets.
However, the regulatory landscape remains mixed. Rhode Island recently passed Senate Resolution 373 to study blockchain and crypto, while Louisiana will form a committee examining AI, blockchain, and cryptocurrency technologies. These studies signal potential future adoption rather than outright rejection.
Meanwhile, federal momentum continues building. The US House of Representatives advanced the Digital Asset Market Clarity Act of 2025 to a floor vote after yesterday’s markup in the House Financial Services Committee and House Committee on Agriculture. The bill aims to establish comprehensive regulatory framework for digital assets nationwide.
The amended GENIUS Act faces a crucial cloture motion Wednesday afternoon, requiring 60 votes to advance. The legislation passed its second cloture motion three weeks ago and now moves toward potential final passage.