Connecticut has officially passed a law that limits the state government to accept, keep or invest in virtual currency, which effectively banishes the creation of a cryptocurrency reserve.
On June 30, Governor Ned Lamont signed House Bill 7082 in the law, after unanimous approval by both chambers of the state legislator. The legislation, now adopted as public law 25-66, is planned to take effect on October 1, 2025.
The bill, introduced in February by representative Jason Doucette, quickly went through the legislative process. It passed the house and the Senate without a single opposite mood, which confirms a strong dual consensus about limiting the involvement of the state in digital assets such as Bitcoin.
The new law prohibits Connecticut and its political subdivisions to accept virtual currencies for payments or to buy, hold or set up a form of digital assets reserve. The statute uses a broad definition of “virtual currency” on the basis of section 36a-596 of the general articles of association of the state, which include the most cryptocurrencies in circulation today.
Furthermore, the extensive legal updates of the money tramework of the state and mandates that operate under the jurisdiction of the state retains a 1: 1 reserve support for all digital assets held by the customer.
The law also introduces mandatory risk -public oppositions, fraud protection measures and strict transaction limits for virtual currencies that are generally known as crypto money machines.
The legislation effectively removes State level from constant efforts to integrate Bitcoin into public treasury strategies.
Although some states have moved to adopt strategic reserves as part of broader digital assets initiatives, the general prohibition of Connecticut makes it one of the most restrictive jurisdictions in the country with regard to the approval of cryptocurrency by state institutions.
On the other hand, at least 17 US states are currently currently discussing legislation aimed at creating the State managed Bitcoin or Digital Activa reserves, according to facts From crypto legislation tracker Bitcoin laws. Among them, New Hampshire and Arizona have fully established such frameworks, while Texas has cleared comparable legislation through both rooms.
However, not all efforts were successful. On July 1 Vetoed House Bill 2324, who wanted to set up Governor of Arizona Katie Hobbs, who wanted to set up a Bitcoin reserve fund with the help of cryptocurrencies seized by the government.
Hobbs argued that the proposal could discourage local law enforcement from conducting research into digital assets by removing forfeited assets from local agencies.
