In a decisive move that sets it apart from emerging pro-Bitcoin state policies, Connecticut has passed HB 7082, a law that prohibits all state-level use, investment, or custody of virtual currencies. Signed into law as Public Act 25-66 on June 10, the sweeping legislation will take effect October 1, 2025, and effectively bars the creation of a public Bitcoin reserve or similar state-sponsored crypto initiatives.
Law Enacts Broad Ban on State Crypto Involvement
The bill passed with unanimous bipartisan support in both chambers of the Connecticut General Assembly, underscoring the state’s firm stance against integrating virtual currencies into public finance. Under the new law, Connecticut and its political subdivisions are forbidden from:
- Accepting payments in virtual currency
- Purchasing or holding cryptocurrencies
- Investing in crypto assets
- Establishing any form of state-run virtual currency reserve
The law defines “virtual currency” according to Section 36a-596 of the Connecticut General Statutes, a definition that includes most widely used cryptocurrencies, including Bitcoin, Ethereum, and stablecoins.
This stands in stark contrast to states like Texas, Arizona, and New Hampshire, which are moving to create Strategic Bitcoin Reserves (SBRs) to hedge against dollar debasement and diversify public funds. According to the State Reserve Race tracker by @Bitcoin_Laws, both Arizona and New Hampshire have already enacted SBR legislation, with Texas’ bill awaiting the governor’s signature.
Stricter Oversight for Private Crypto Businesses
In addition to the state ban, HB 7082 also strengthens regulatory oversight for private companies dealing with digital assets. New requirements include:
- Mandatory licensing for crypto-related businesses, including wallet providers and crypto ATM operators
- 1:1 reserve backing for virtual currencies held on behalf of customers
- Robust consumer disclosures, including fraud risks and transaction limits
- Receipt issuance and transparency standards for all transactions
These measures are intended to protect consumers and enhance financial stability, particularly in light of rising crypto adoption in retail settings and peer-to-peer transfers.
National Crypto Policy Divide Widens
Connecticut’s move highlights the growing divide between U.S. states on crypto policy, with some embracing digital assets as a strategic hedge and others doubling down on regulatory conservatism. While pro-crypto advocates argue that public Bitcoin reserves and crypto integration can provide long-term fiscal resilience, Connecticut lawmakers appear unconvinced.
By preemptively banning any public involvement in virtual currencies, Connecticut has positioned itself as one of the most crypto-averse states in the country, a stance that could shape broader debates on digital finance at the federal level.
Final Thoughts
As states race to define their roles in the future of finance, Connecticut’s HB 7082 draws a clear line in the sand. While some view Bitcoin and other virtual currencies as essential tools for innovation and monetary sovereignty, Connecticut has chosen regulatory restraint and centralized financial control — for now. Whether this approach proves prescient or overly cautious remains to be seen as the national crypto landscape continues to evolve.
