Connecticut Governor Approves Law Prohibiting Crypto Use In Government

Connecticut Governor Ned Lamont has signed a bill restricting the use of digital assets in the government of the State, in particular the creation of a cryptocurrency reserve.

Lamont signed Bill 7082 of Connecticut House on Monday, which was previously approved by the House of US and Senate representatives. The legislation specifically prohibits the government of the State “to accept or require a payment in the form of virtual currency” or “buy, hold, invest or establish” a cryptographic reserve.

The bill, presented in February by the state representative, Jason Doucette, also establishes requirements for holders of the Crypto silver transmission license in Connecticut. The measures prohibiting the government of the State to accept the crypto or to establish a reserve of digital assets take effect on October 1.

Connecticut’s government legislation has marked a different path from that of several American states exploring the creation of a Bitcoin reserve (BTC). Cointelegraph set out to comment but had not received an answer at the time of publication.

In relation: Kazakhstan plans to establish a national cryptography reserve

Brogan Law founder Aaron Brogan told Cintelegraph in June that the bill was a reflection of the division between certain Democrats and Republicans on digital assets, probably due to the nationalized debate with the bonds of American President Donald Trump with the cryptocurrency industry. He said that the bill would be “nothing substance”.

“This indicates that Connecticut is symbolically opposed to cryptocurrency and to all states that have established Bitcoin reserves,” said Brogan.

American states embracing and rejecting cryptography reserves

While several American states have adopted legislation to establish cryptocurrency reservations, others have pure and simple, either through the legislators of the legislative assembly or the office of the governor. At the federal level, Trump signed an executive decree to create a “strategic bitcoin reserve” and a “storage of digital assets” in March, with advisers suggesting different ways to extend the government’s cryptographic assets beyond the digital assets seized in the cases of the Ministry of Justice.