Connecticut Throws Down the Gauntlet: State Bans All Crypto Action

No More Virtual Coins in the Public Coffers

Hold onto your hats, crypto fans! Connecticut just slammed the door shut on any state-level crypto shenanigans. That's right, they've outlawed the use, investment, or even just holding onto virtual currencies like Bitcoin. Forget about setting up a shiny public Bitcoin reserve; it ain't happening here!

HB 7082: The Crypto Killjoy

On June 10, Connecticut pulled the trigger on HB 7082, turning the state's money transmission laws upside down. This beast of a bill, now known as Public Act 25-66 and hitting the streets on October 1, locks down state and local government from taking any crypto payments or getting cozy with virtual currencies. No buying, no holding, no investing, and definitely no setting up a crypto piggy bank.

What Counts as Crypto?

Wondering what's on the chopping block? The law snags anything labeled "virtual currency" under section 36a-596 of Connecticut's general statutes. That's a wide net, folks, catching just about every crypto swimming in the market today.

Bipartisan Backlash

Believe it or not, both sides of the aisle in Connecticut's state legislature threw their weight behind this ban, passing it unanimously. Looks like there's no love lost for state-backed crypto projects or any dreams of a sovereign Bitcoin stash.

Private Sector Feels the Heat Too

But wait, there's more! HB 7082 isn't just raining on the state's parade; it's cranking up the heat on private money movers too. If you're dealing in digital wallets or crypto kiosks, you better get licensed and play by the new, tougher rules. We're talking 1:1 reserve backing for any crypto you're holding for customers, spilling the beans on risks to consumers, beefing up fraud protection, setting transaction limits, and keeping those receipts handy.

Contrasting Crypto Climates

While Connecticut's going full ice age on crypto, other states are heating up with plans to roll out their Strategic Bitcoin Reserves. Arizona and New Hampshire are already in the game, having locked down their SBR laws. Texas is hot on their heels, with a bill that's passed both chambers but is still waiting for the governor's stamp of approval.