Breaking: Connecticut Slams Door on Crypto with HB7082 – State Treasury Bans Digital Assets
Connecticut just drew a line in the sand—and it''s red for crypto. Governor Ned Lamont signed HB7082 into law today, barring state treasury investments in Bitcoin, Ethereum, or any digital asset. No hedging, no ''crypto diversification'' plays—just cold, hard prohibition.
The bill passed with bipartisan support, framing crypto as ''too volatile'' for public funds. Critics call it political theater—especially since Connecticut''s pension fund lost $300M on meme stocks last year.
Key details:
- Effective immediately: No treasury exposure to cryptocurrencies or blockchain-based securities
- Excludes indirect holdings (like Grayscale trusts) if under 1% of portfolio
- Mandates annual risk reports—because apparently bureaucrats understand market timing now
Meanwhile, Texas and Florida are doubling down on blockchain adoption. Connecticut? They''ll stick to bonds and bureaucratic hand-wringing.
One hedge fund manager quipped: ''Guess they''d rather lose money the old-fashioned way—through inflation and red tape.''
Connecticut Shuts Door on State-Backed Crypto Projects
The new law bars all state and municipal bodies from establishing cryptocurrency reserves or accepting digital assets as payment for taxes, fees, or any financial obligations. This sweeping action effectively halts any future state-supported crypto projects in Connecticut.
In addition to the investment ban, the legislation outlines rigorous consumer protections for VIRTUAL currency service providers.
Companies involved in money transmission must prominently display warnings that transactions are irreversible and that losses from fraud or errors may be unrecoverable. They are also required to disclose all material risks to customers and verify the identity of users under the age of 18.
The legislation also revises the state’s broader financial oversight laws and introduces new definitions surrounding key digital finance terms such as digital wallets, kiosks, and control persons. Moreover, it compels crypto businesses licensed in Connecticut to implement enhanced compliance programs that meet new state standards.
This hardline stance contrasts sharply with the growing number of states actively pursuing digital asset adoption. Bitcoin Laws data reveals that 31 states are currently considering Bitcoin reserve bills. Of them, 16 have advanced while 8 rejected similar measures. While some of those rejections may still be revisited, Connecticut’s legislation is significant for the breadth and decisiveness of its restrictions.
First in the Nation
Last month, New Hampshire officially became the first US state to establish a strategic bitcoin reserve. On May 6, Governor Kelly Ayotte signed House Bill 302 into law, which allowed the state treasury to invest up to 5% of its funds in Bitcoin and other digital assets with market capitalizations over $500 billion. Currently, only Bitcoin qualifies.
The law, which is inspired by Satoshi Action’s policy framework, requires secure, US-regulated custody and aims to diversify reserves while upholding fiscal responsibility.
