Connecticut Drops the Hammer on Crypto: State Bans Virtual Currency Reserves

Governor Lamont Signs Historic Bill into Law

Boom! Connecticut just slammed the door on crypto. The state government is now barred from accepting, holding, or even dreaming about investing in virtual currencies. No more crypto reserves, folks. It's a done deal.

On June 30, Governor Ned Lamont put pen to paper and signed House Bill 7082 into law. Both the House and Senate gave it a unanimous thumbs up, and now it's official as Public Act 25-66. Mark your calendars for October 1, 2025, because that's when this bombshell drops.

Rep. Jason Doucette threw this grenade back in February, and man, did it move fast. No opposition, no dissent—just a clear, bipartisan "nope" to state involvement with digital assets like Bitcoin.

So, what does this mean? Connecticut and all its political subdivisions are out of the crypto game. No accepting virtual currencies for payments, no buying, no holding, and absolutely no digital asset reserves. They've got a broad definition of "virtual currency" too, covering pretty much all the cryptos out there.

But wait, there's more! The state's money transmission laws are getting a major overhaul, and any crypto biz operating in Connecticut better have a 1:1 reserve backing for all customer-held digital assets. No shortcuts, no excuses.

And for those crypto ATMs? Get ready for mandatory risk disclosures, fraud protection, and strict transaction limits. They're not playing around.

This move effectively boots Connecticut out of the club of states trying to weave Bitcoin into their treasury strategies.

While some states are diving headfirst into digital asset reserves, Connecticut's saying, "Not on our watch." It's one of the toughest stances in the country when it comes to state institutions messing with crypto.

Meanwhile, 17 other U.S. states are juggling their own crypto reserve bills. New Hampshire and Arizona have already taken the plunge, and Texas is right behind them. But it's not all smooth sailing—Arizona's Governor Katie Hobbs just vetoed a bill on July 1 that would've set up a Bitcoin reserve fund from seized assets.

Hobbs had her reasons, saying it might make local law enforcement think twice about diving into digital asset investigations if their forfeited goodies get redirected.