What happened?
Connecticut has passed a new law prohibiting the state from investing in digital assets, including Bitcoin. The legislation, known as H.B. 7082, was unanimously approved by both the state’s House of Representatives and Senate. This law also updates Connecticut’s money transmission regulations to focus on crypto regulation, mandating that businesses disclose material risks of crypto transactions.
Who does this affect?
This law primarily affects the Connecticut state government and potentially any businesses engaged in crypto activities within the state. It restricts the state from holding or investing in virtual currencies and imposes requirements on money transmitters to enhance transparency. Additionally, the law impacts minors, as it mandates legal guardian verification for underage users engaging in crypto-related activities.
Why does this matter?
This legislative move reflects growing hesitation and concern over the volatility of cryptocurrencies as reserve assets, influencing Connecticut’s economic strategy compared to other states like Texas, which have embraced Bitcoin reserves. The decision could impact investor and business confidence in the state’s openness to digital asset innovation. By drawing a firm line against state-level crypto investments, Connecticut differentiates itself from the federal stance and other states endorsing crypto as part of their financial portfolios.