Connecticut Slams Door on Crypto in Government: Public Sector Banned from Digital Assets
Another state folds under regulatory pressure—Connecticut just walled off crypto from all public sector operations. No more treasury gambles with taxpayer money on ''digital gold.''
Government wallets go cold
The Nutmeg State''s ban cuts off municipalities, agencies, and public funds from touching crypto. No buying, no holding, no mining—just old-fashioned fiat for bureaucratic balance sheets.
Security theater or necessary shield?
Officials cite volatility and security risks (read: we don''t want to explain a rug pull to voters). Meanwhile, pension funds still pour billions into opaque private equity—but sure, blockchain''s the problem.
Connecticut joins the anti-crypto states club—because nothing says ''innovation hub'' like banning the internet of money while your pension fund bets on mall REITs.
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This legislation also blocks the creation of a state-run cryptocurrency reserve—a concept being explored on the federal level and embraced in other states pushing for Bitcoin-backed strategies.
While dozens of states have introduced similar initiatives, Connecticut joins a smaller group—including Arizona, Florida, and Utah—that have opted to reject them.
The move places Connecticut firmly in the camp of crypto-skeptical states, as others continue to debate how digital assets should fit into the future of public finance.
