Connecticut Bans Public Investment in Cryptocurrencies

TLDR

• Connecticut law bans public funds from investing in cryptocurrencies.
• The law covers Bitcoin, Ethereum, and all major altcoins.
• Pension reserves and municipal capital are included in the ban.

Connecticut has enacted legislation that bans public investment in cryptocurrencies. The new law, known as HB7082, prohibits state and local governments from investing in digital currencies like Bitcoin and Ethereum. This decision reflects concerns over the volatility of cryptocurrency markets and aims to protect public funds from financial risk.

The move aligns with Connecticut’s historically cautious approach towards digital assets. The law, passed unanimously by both the state House and Senate, assigns the state banking commissioner to oversee compliance. As of now, there have been no public statements from the governor or other officials on this matter.

Scope of the Cryptocurrency Ban

The new law explicitly covers a wide range of virtual currencies. It prohibits public funds from being allocated, held, or accepted in digital forms, affecting all major cryptocurrencies, including Bitcoin (BTC) and Ethereum (ETH). The measure extends to any altcoins or virtual currencies, impacting institutions like remittance providers and payment applications that handle cryptocurrencies.

All public investments, including pension reserves and municipal capital, are included in the ban. However, the law does not restrict private crypto investments. Connecticut Bill Status for HB07082 2025 details these provisions.

Regulatory and Institutional Implications

The legislation introduces strict anti-money laundering (AML) compliance and requires parental consent for crypto users under 18. Connecticut banking officials have stated that these steps are meant to secure public funds from cryptocurrency market volatility. So far, the public discussions and crypto community responses remain limited.

While this ban strictly applies to government entities, it signals an increased regulatory caution within the U.S. regarding public sector exposure to digital assets. Its broader implications may influence regulatory approaches in other regions, although direct impacts remain centered within Connecticut. A Twitter post discussing Bitcoin laws might provide additional context: Bitcoin Laws on Twitter Discussion.