Connecticut Governor Lamont Sparks Outrage: Signs Controversial Bill Banning Digital Asset Investments

Connecticut just slammed the door on crypto—hard. Governor Ned Lamont’s pen stroke bans digital asset investments, igniting fury among libertarians and innovators alike.

Here’s the fallout:

The Anti-Crypto Playbook

Lamont’s bill positions Connecticut as the latest state to kneecap financial sovereignty. No more Bitcoin IRAs, no Ethereum ETFs—just good ol’ centralized control. Because who needs innovation when you’ve got bureaucracy?

Investors Left Out in the Cold

Retail traders? Screwed. Institutional players? Redirected. The message is clear: Connecticut would rather protect you from yourself than let you chase generational wealth in a volatile market. (But hey, lottery tickets are still legal.)

The Irony of ‘Progressive’ Policy

Progressivism used to mean forward-thinking. Now it’s a euphemism for ‘we know better than you.’ Meanwhile, Wall Street’s high-frequency traders keep rigging the system—but sure, crypto’s the problem.

Lamont’s move isn’t just anti-crypto. It’s anti-choice, anti-competition, and anti-future. And if history’s any guide, bans just create black markets—or send talent fleeing to Miami.

Connecticut Takes a Stand Against Digital Assets

House Bill 7082 was first introduced in February 2025. The bill was co-sponsored by Democratic lawmakers. This included State Representative Kenneth Gucker, Senators Patricia Miller and Matthew Lesser, and Representative Jason Doucette. 

It garnered substantial support, passing the House on May 14 with 105 votes in favor and 42 against. On May 30, the Connecticut General Assembly unanimously approved the bill, with votes of 148-0 in the House and 36-0 in the Senate. Governor Lamont’s signature on June 30 has finalized its enactment.

The legislation prohibits the state and its political subdivisions from accepting, holding, or investing in VIRTUAL currencies.

“Neither the state nor any political subdivision of the state shall (1) accept or require payment in the FORM of virtual currency for an amount due to the state or the political subdivision, or (2) purchase, hold, invest in or establish a reserve of virtual currency,” HB 7082 reads.

NEW: Connecticut Governor Ned Lamont officially signed into law the state's 'Bitcoin Reserve Ban' today.

Connecticut is now prohibited from accepting, holding, or investing in digital assets. https://t.co/vIXIkprdHI

Moreover, it also introduces comprehensive consumer protection measures. It mandates that businesses engaging in virtual currency transactions must disclose potential risks, such as the non-recoverability of losses, lack of government backing or insurance, and the irreversibility of transactions.

Virtual currency kiosk operators, in particular, face strict compliance requirements. These include verifying customer identities, preventing the use of high-risk or sanctioned wallets, and limiting the amount customers can transact daily. 

New customers are subject to daily transaction limits of $2,000 while existing customers can transact up to $5,000. Kiosks must also offer live customer support and implement measures to prevent fraud. Furthermore, businesses must employ a full-time compliance officer to ensure adherence to proper regulations.

This move positions Connecticut as an outlier in the US, where several states are embracing digital assets as part of their financial strategies. In late June 2025, Texas Governor Greg Abbott signed Senate Bill 21, authorizing the Texas Strategic bitcoin Reserve. 

Texas joined Arizona and New Hampshire, which have also passed legislation to establish Bitcoin and digital asset reserves. Nonetheless, Texas is the first to actively finance the reserve through public funds.

Meanwhile, Arizona’s lawmakers recently revived a bill that seeks to create a Bitcoin and Digital Assets Reserve Fund. This signaled a broader trend of state-level adoption.

Internationally, the momentum for cryptocurrency reserves is also growing. According to local media reports, the National Bank of Kazakhstan is exploring the creation of a state crypto reserve. Previously, Pakistan also announced plans to establish a Bitcoin reserve, reflecting a global shift toward integrating digital assets into national financial frameworks.