Connecticut Prohibits Crypto in State Treasury

Connecticut has made a daring transfer to distance itself from authorities cryptocurrency involvement by unanimously passing Home Invoice 7082, now often called Public Act No. 25-66.

This marks the nation’s most expansive state-level prohibition on crypto-related authorities exercise.

Connecticut Shuts Door on State-Backed Crypto Initiatives

The new law bars all state and municipal our bodies from establishing cryptocurrency reserves or accepting digital property as cost for taxes, charges, or any monetary obligations. This sweeping motion successfully halts any future state-supported crypto initiatives in Connecticut.

Along with the funding ban, the laws outlines rigorous client protections for digital foreign money service suppliers.

Firms concerned in cash transmission should prominently show warnings that transactions are irreversible and that losses from fraud or errors could also be unrecoverable. They’re additionally required to reveal all materials dangers to clients and confirm the identification of customers underneath the age of 18.

The laws additionally revises the state’s broader monetary oversight legal guidelines and introduces new definitions surrounding key digital finance phrases resembling digital wallets, kiosks, and management individuals. Furthermore, it compels crypto companies licensed in Connecticut to implement enhanced compliance packages that meet new state requirements.

This hardline stance contrasts sharply with the rising variety of states actively pursuing digital asset adoption. Bitcoin Legal guidelines knowledge reveals that 31 states are at the moment contemplating Bitcoin reserve payments. Of them, 16 have superior whereas 8 rejected related measures. Whereas a few of these rejections should be revisited, Connecticut’s laws is critical for the breadth and decisiveness of its restrictions.

First within the Nation

Final month, New Hampshire formally became the primary US state to determine a strategic Bitcoin reserve. On Might 6, Governor Kelly Ayotte signed Home Invoice 302 into legislation, which allowed the state treasury to speculate as much as 5% of its funds in Bitcoin and different digital property with market capitalizations over $500 billion. Presently, solely Bitcoin qualifies.

The legislation, which is impressed by Satoshi Motion’s coverage framework, requires safe, US-regulated custody and goals to diversify reserves whereas upholding fiscal accountability.