Connecticut’s House Bill 7082 Prohibits State And Local Government From Crypto

Connecticut Governor Ned Lamont Bill 7082 signed, prohibiting government entities and local governments from accepting, holding or investing in cryptocurrencies, including bitcoin. The legislation, as of October 1, 2025, also prohibits the State from establishing a reserve of crypto assets, making Connecticut one of the rare American states to explicitly reject such initiatives.

The bill, which was adopted unanimously both in the Chamber and in the Senate, aims to protect public funds from volatility and regulatory uncertainty of digital assets. It also imposes strict regulations on cryptographic companies, requiring licenses, disclosure of consumer risks and protections for minors, such as parents’ consent for users under 18. However, it does not prohibit residents from having, negotiating or investing in bitcoin or other cryptocurrencies, unlike certain erroneous reports. Legislation focuses only on public funds and activities at the state level, aimed at protecting money from taxpayers from volatility and regulatory uncertainty of digital assets.

Matt Hougan Bit, consider it as a short-view decision that could hinder Connecticut’s ability to innovate in the digital economy. By prohibiting state investments in digital assets, Connecticut could lack long -term potential financial advantages observed in states like Texas, which has allocated $ 10 million to a bitcoin reserve. This decision contrasts with states like Texas, Arizona and New Hampshire, which continue the Bitcoin reserves.

Critics argue that the ban can stifle the innovation of the blockchain, while supporters, including the representative of the State Gentlemanhighlight the protection of consumer and taxpayers. The Law Reflects Connecticut’s Cautious Approach AMID A National Debate, with 48 State-Level Crypto Reserve Propals Under Consideration Across the Us by Prohibiting State and Local Entities from Investing in or Holding Cryptocurrencies, Connecticut Prioritizes Tax Stability, SHIELDING PUBL of Digital FIGIENTS LIKE Bitcoinwho have seen price oscillations of more than 50% in recent years.

This could create a precedent for other states distrusting the risks of cryptography. The law license requirements and consumer protection, including compulsory risk disclosure and parents’ consent for minors, aim to limit fraud and improve the transparency of cryptographic companies. This could strengthen consumer confidence, but can dissuade small cryptography companies due to compliance costs. Critics argue that the ban could hinder Fintech blockchain and innovation, potentially leading startups to states adapted to crypto such as Texas or Wyoming.

Connecticut may miss economic growth in a sector planned to reach a global market size of $ 13.2 billion by 2027. Unanimous bipartisan support for the bill reflects a rare consensus on cryptographic skepticism, potentially influencing other states to adopt similar restrictions, in particular those which favor budgetary conservatism.

States like Texas, Arizona and New Hampshire adopt crypto, with initiatives aimed at establishing Bitcoin reserves or tax incentives for blockchain companies. For example, Texas has adopted laws allowing banks to hate crypto, aimed at becoming a digital active center. These states consider crypto as a coverage against inflation and an engine of economic innovation.

Connecticut joins states like New York, which has rigorous cryptographic regulations (for example, the Drank), by prioritizing consumer protection and financial stability on innovation. These states cite risks such as market volatility, fraud and environmental concerns of the extraction of cryptography. The crypto reserve proposals at the level of the pending state, the gap reflects competing visions: economic opportunity against risk management. The prohibition of Connecticut is aligned with the latter, the potentially isolation of the pro-Crypto momentum in the Paris states on digital assets as the future economic engine.