Connecticut has officially joined the growing number of states saying “no” to cryptocurrency investments. A new law prevents the state and its local governments from investing in, accepting payments in, or holding any cryptocurrencies.
The New Law: What it Means
The recently passed House Bill 7082 (HB 7082) isn’t just about crypto. It also updates the state’s money transmission laws to include things like digital wallets and crypto kiosks. The bill adds stricter rules for businesses handling crypto, including licensing, compliance, and disclosure requirements. It also requires parental consent for minors to use money-sharing apps and allows users to delete their account data upon request. Crucially, the bill explicitly forbids Connecticut from creating a “strategic reserve” of cryptocurrencies.
Other States Following Suit (or Not)
Connecticut isn’t alone in its cautious approach. Utah passed a similar bill, but removed the part allowing state crypto investments. Arizona tried to create a Bitcoin reserve, but the governor vetoed the bill, citing the untested nature of crypto assets.
A Mixed Bag Across the US
While some states are hesitant, others are exploring the potential of crypto and blockchain technology. Rhode Island is studying blockchain and cryptocurrency, and Louisiana is forming a committee to examine AI, blockchain, and crypto. At the federal level, there’s movement on the Digital Asset Market Clarity (CLARITY) Act, aiming to create a clearer regulatory framework for digital assets. The GENIUS Act, focusing on stablecoins, is also making progress through Congress.
