Connecticut Lawmakers Pass Bill Banning State Investments In Crypto

Connecticut passed a bill to ban the state from holding or investing in cryptocurrencies and impose several new provisions for money transmitters, joining the list of US states opting out of a Strategic Bitcoin Reserve (SBR).

Connecticut Bans State Crypto Investments

On Tuesday, Connecticut lawmakers voted in favor of a bill that prohibits the state and local governments from investing in, accepting payments, or holding cryptocurrencies. The legislation was passed by the Connecticut House and Senate unanimously and was signed into law.

House Bill 7082 (HB 7082), or “An Act Concerning Various Revisions to the Money Transmission Statutes, State Payments and Investments in Virtual Currency (…),” was introduced in February by the Connecticut House Banking Committee and co-sponsored by State Representative Kenneth Gucker, and Senators Patricia Miller and Matthew Lesser.

The legislation updates the state’s money transmission laws, with a focus on regulating digital assets. It expands the definition of money transmission to include the use of digital wallets and crypto kiosks.

Additionally, the bill also “imposes strict licensing, compliance, and disclosure requirements on businesses that hold, transmit, or store virtual currency on behalf of others, and restricts money-sharing apps from opening accounts for minors without verified parental consent and requires such accounts and data to be deletable upon request,” Bitcoin Laws summarizes.

Notably, HB 7082 specifically prohibits the establishment of a strategic reserve, detailing that “Neither the state nor any political subdivision of the state shall (…) establish a reserve of virtual currency.”

Previously, Connecticut also saw the failure of a proposed bill to establish a comprehensive framework to advance Web 3.0 technologies and create a dedicated task force to oversee and regulate emerging digital technologies.

This move follows a similar approach by other US states. As reported by Bitcoinist, Utah passed House Bill 230 (HB 230), also known as the “Blockchain and Digital Innovation Amendments,” in March, but scrapped the clause that allowed the state to invest in digital assets.

Meanwhile, Arizona lawmakers passed a Strategic Bitcoin Reserve legislation last month, which was vetoed by Governor Katie Hobbs, arguing that crypto assets were too “untested” for the state’s retirement fund.

The bill would have allowed public funds in Arizona, such as the state treasurer or state retirement system, to invest up to 10% of their assets under management in digital assets. Additionally, Governor Hobbs vetoed another SBR bill that didn’t include retirement fund investment.

US Advances Digital Asset Legislation

Despite crypto legislation hitting a wall in many states, others are starting to explore the industry’s benefits. Bitcoin Laws shared on Tuesday that Rhode Island passed Senate Resolution 373 to study “Blockchain & Cryptocurrency,” while Louisiana will form a committee to study “AI, blockchain and cryptocurrency” and consider the “benefits and challenges of these technologies.”

Moreover, the US House of Representatives has advanced the Digital Asset Market Clarity (CLARITY) Act of 2025 to a House floor vote after passing yesterday’s markup in the House Financial Services Committee and the House Committee on Agriculture. The bill aims to establish a regulatory framework for digital assets in the US and provide the long-awaited clarity and protection for the industry.

Similarly, the amended Guiding and Establishing National Innovation for US Stablecoins (GENIUS) Act will face a new cloture motion on Wednesday afternoon, needing 60 votes to continue the legislative process.

Notably, the GENIUS Act passed its second cloture motion nearly three weeks ago after an unsuccessful procedural vote at the start of May. Senators voted on the motion to proceed to formal debate on the legislation and advanced it to the amendment process to address key concerns from both parties.