The US state of Connecticut has passed a law that prohibits the state from investing in digital assets. The new legislation has also barred the state government from creating a strategic Bitcoin reserve.
The bill, H.B. 7082, published by the Connecticut General Assembly on Tuesday, was anonymously approved by both the state House of Representatives and the Senate, with no opposing votes.
Further, the legislation has updated the state’s money transmission laws, with a major focus on crypto regulation. Crypto businesses engaging in money transmissions should disclose all material risks associated with crypto, the new law reads.
Connecticut’s legislative action is part of a broader effort to regulate state-level crypto activities and make sure that public funds are protected from the risks associated with these speculative investments.
Additionally, the bill mandates legal guardian verification for users under the age of 18, imposing protections for minors.
Connecticut Falls Out of Bitcoin Reserve Race
Following months of strategic Bitcoin reserve proposals from 27 states, New Hampshire, Arizona, and Texas have approved state-level Bitcoin reserve law.
For instance, Texas has a “significant budget surplus” and a strategic Bitcoin reserve in that state “offers a forward-thinking investment opportunity,” Lee Bratcher, President of The Texas Blockchain Council, told Cryptonews.
“Bitcoin’s long-term potential as a store of value aligns with our state’s history of making smart, diversified investments in emerging assets,” he said at the time.
However, Florida became the latest to drop crypto legislation this year, joining other states, including Wyoming, South Dakota, North Dakota, Pennsylvania, Montana, and Oklahoma.
The hesitance to embrace BTC comes amid concerns over its price volatility and long-term viability as a reserve asset.
On the Federal front, President Donald Trump signed an executive order establishing a strategic Bitcoin reserve, a significant move, but, didn’t have concrete details, failing to excite traders.
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