Connecticut Slams Door on Bitcoin – State Bans Public Funds from Crypto Investments
Lawmakers just flipped the switch on Connecticut''s crypto future—and it''s looking decidedly analog.
The cold shoulder for Bitcoin
No more dipping into pension funds or state coffers for that sweet, sweet volatility. The bill blocks all public investment in digital assets, joining the growing club of skeptical governments.
Risk-averse or innovation-averse?
Officials cite ''prudent fiscal management''—translation: they''d rather lose money the old-fashioned way (municipal bonds, anyone?). Meanwhile, crypto markets shrug and hit new ATHs without them.
One thing''s clear: when bureaucrats play it safe, someone else gets the asymmetric upside. As usual.
NEW: Connecticut passes law to ban state investment in bitcoin.HB7082 prohibits the state from accepting, holding, or investing in any VIRTUAL currencies.
It also imposes several new requirements on money transmitters. pic.twitter.com/lKozljMp1R — bitcoin Laws (@Bitcoin_Laws) June 10, 2025
Connecticut’s legislative action is part of a broader effort to regulate state-level crypto activities and make sure that public funds are protected from the risks associated with these speculative investments.
Additionally, the bill mandates legal guardian verification for users under the age of 18, imposing protections for minors.
Connecticut Falls Out of Bitcoin Reserve Race
Following months of strategic Bitcoin reserve proposals from 27 states, New Hampshire, Arizona, and Texas have approved state-level Bitcoin reserve law.
For instance, Texas has a “significant budget surplus” and a strategic Bitcoin reserve in that state “offers a forward-thinking investment opportunity,” Lee Bratcher, President of The Texas Blockchain Council, told Cryptonews.
“Bitcoin’s long-term potential as a store of value aligns with our state’s history of making smart, diversified investments in emerging assets,” he said at the time.
However, Florida became the latest to drop crypto legislation this year, joining other states, including Wyoming, South Dakota, North Dakota, Pennsylvania, Montana, and Oklahoma.
The hesitance to embrace BTC comes amid concerns over its price volatility and long-term viability as a reserve asset.
On the Federal front, President Donald TRUMP signed an executive order establishing a strategic Bitcoin reserve, a significant move, but, didn’t have concrete details, failing to excite traders.
