Connecticut Bans State Cryptocurrency Investments

Connecticut passed HB7082 on June 11, 2025, prohibiting the state from investing in cryptocurrencies and introducing new rules for money transfer institutions. The bill, passed unanimously, blocks any use of public funds for the purchase or holding of digital assets such as Bitcoin or Ethereum.

The legislation stipulates that no public entity in Connecticut can invest in cryptocurrencies or accept such assets in financial operations. The measure reflects a cautious approach to the risks associated with the crypto market, which is seen as volatile and unsafe for taxpayer funds.

Additionally, the law introduces extra requirements for institutions processing money transfers, especially operations involving virtual currencies. Local officials claim the main goal is consumer protection and financial stability.

Connecticut’s Banking Commissioner stated that the law provides added protection for public funds, keeping them away from the instability of the crypto market. The measure may impact public perception of digital assets and is closely watched by financial institutions and blockchain industry participants.