Connecticut Bans Crypto Payments and Reserves in State Government

Connecticut Governor Ned Lamont has signed a bill into law that will restrict the use of digital assets within state government operations, signaling a cautious stance toward cryptocurrencies. On Monday, Lamont approved Connecticut House Bill 7082, which had earlier passed through the state’s House of Representatives and Senate with considerable debate. The legislation prohibits the state government from accepting payments in the form of virtual currency or establishing a crypto reserve for any operational or investment purposes. These provisions will officially take effect on October 1, underscoring a clear policy direction away from direct state-level crypto engagement while other U.S. states explore building crypto reserves to diversify their treasuries. Connecticut Chooses a Different Path The bill, introduced by state Representative Jason Doucette in February, also outlines additional requirements for crypto money transmission licensees operating in Connecticut, adding layers of consumer protection while restricting government crypto transactions. This move sharply contrasts with initiatives in states like New Hampshire, which have recently moved to establish state-run cryptocurrency reserves as part of their financial infrastructure strategies. Brogan Law founder Aaron Brogan described Connecticut’s move as largely symbolic amid growing national debates on cryptocurrency use, particularly under former President Donald Trump’s administration, which has expressed support for expanding federal crypto holdings. Brogan noted, “This is signaling that Connecticut is symbolically opposed to cryptocurrency, and to all the states that have established Bitcoin reserves,” while emphasizing that the bill would “do nothing of substance” to affect broader market dynamics. Crypto Reserves Across States While Connecticut moves to restrict state crypto involvement, other states remain open to the potential of digital assets. Texas Governor Greg Abbott approved legislation in June to establish a crypto reserve, while New Hampshire Governor Kelly Ayotte signed a similar bill in May. At the federal level, Trump signed an executive order earlier this year to create a “Strategic Bitcoin Reserve” and a “Digital Asset Stockpile,” signaling a contrasting approach to crypto in government reserves. Meanwhile, efforts to pass Bitcoin reserve bills failed in states such as South Dakota, Montana, and Pennsylvania, showing how divided the policy landscape remains across the country. As Connecticut enacts its restrictions, it highlights the ongoing debate within the United States over how digital assets should interact with public finances and state governance. The post Connecticut Bans Crypto Payments and Reserves in State Government appeared first on TheCoinrise.com .

Source: The Coin Rise