The US state of Connecticut has passed HB 7082, a bipartisan law that prohibits state and municipal agencies from investing in Bitcoin, Ethereum, or any other virtual currencies. This legislation also bars the creation of a strategic Bitcoin reserve by the state government.
Beyond restricting public sector involvement in cryptocurrencies, the law strengthens regulatory oversight over crypto businesses operating within Connecticut. It mandates enhanced anti-money laundering (AML) measures, including robust identity verification, transaction monitoring, and reporting requirements aligned with federal and international standards like those set by the Financial Action Task Force (FATF).
The bill also protects minors by requiring crypto payment platforms to verify parental consent for users under 18. Lawmakers emphasized the need to shield public funds from the risks posed by crypto market volatility and regulatory uncertainty, citing recent industry incidents such as exchange collapses and hacking events.
Connecticut’s cautious approach contrasts with other states like Texas, New Hampshire, and Wyoming, which have embraced or are exploring strategic Bitcoin reserves and more crypto-friendly policies. This legislation reflects a focus on financial stability, consumer protection, and regulatory clarity rather than speculative investment.
The crypto industry has shown mixed reactions: some stakeholders appreciate the clarity and consumer safeguards, while others warn restrictive measures may stifle innovation and economic opportunity within the state. The law contributes to the ongoing patchwork of state-level crypto regulations amid the absence of a uniform federal framework.