In short
- Connecticut has unanimously adopted the most limiting Crypto Act of the United States, with the exception of all national and local authorities to buy, keep or invest in virtual currencies.
- The legislation mandatory “bold” fraud alerts for crypto companies and requires disclosure of “all material risks”, while the articles of association about the transfer of money are revised.
- The ban of Connecticut contrasts sharply with the national trend, because 31 Bitcoin reservations remain active in 16 states.
While dozens of states are racing to set up Bitcoin reserves, Connecticut just closed the door.
The General Meeting of the State unanimous House Bill 7082 adopted-Nu Public ACT no. 25-66 Die promoted the most radical prohibition of the Nation on Crypto Investments of the government.
The extensive legislation explicitly prohibits government entities to “set up a reserve of virtual currency” and prevents them from accepting crypto as payment for all amounts that owe the state or her political subdivisions.
The new law represents one of the most restrictive approaches of crypto at the level of the state and effectively blocks any future digital asset initiatives sponsored by the state.
Apart from the investment prohibition, the legislation introduces strict measures for consumer protection that require that crypto companies are involved in transfer of money to make “all material risks related to virtual currency” known.
The bill mandatory that crypto service providers show ‘bold’ warnings that say: “Losing as a result of fraudulent or casual transactions cannot be restored and transactions in virtual currency are irreversible.”
Additional protections include verification requirements for users under the age of 18 and extensive disclosure requirements for virtual currency transactions.
In addition to prohibiting crypto in public accounts, the law revises on the articles of association of money transfer, introduces new definitions on digital portfolios, control persons and kiosken and requires rigorous compliance frameworks adopted by the state.
US state of Bitcoin -Reserves
The limiting attitude of Connecticut places it at odds with a growing number of states that embrace crypto as a strategic property.
The legislative split points to the increasing disagreement about the role of crypto in the management of the state, whereby supporters quote the benefits for diversification of portfolios, while opponents express concern about volatility and fiduciary responsibility.
Approximately 31 accounts with regard to the state of Bitcoin reserves are still underway, with 16 states that are improving while 8 proposals have rejected, according to data from the Reserve -Tracker Bitcoin Laws.
Despite the rejections, some legislators have sworn to visit proposals in the future.
New Hampshire became the first state to successfully set up a strategic Bitcoin reserve last month, followed by Arizona with a more limited approach aimed at non-tax income funds.
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