Connecticut Governor Approves Law Banning Cryptocurrency Use in Government
Many provisions of this law received overwhelming support in the state House and Senate and will take effect on October 1.
Details of the New Law
Connecticut Governor Ned Lamont has signed a bill into law restricting the use of digital assets in state government, including the establishment of cryptocurrency reserves.
On Monday, Lamont signed Connecticut House Bill 7082, which was previously approved by the state’s House of Representatives and Senate. The legislation specifically prohibits the state government from “accepting or requiring payment in the form of virtual currency” or “purchasing, holding, investing in or establishing” cryptocurrency reserves.
The bill, introduced in February by state Representative Jason Doucette, also establishes requirements for crypto money transmission licensees in Connecticut. The provisions barring the state government from accepting crypto or establishing digital asset reserves take effect on October 1.
Expert Perspectives
Connecticut’s state government legislation has marked a different path from some US states that are exploring the establishment of Bitcoin reserve funds.
Brogan Law founder Aaron Brogan said the bill reflects divisions between some Democrats and Republicans on digital assets, possibly due to the nationalization debate with US President Donald Trump’s connections to the cryptocurrency industry. He said the bill would “have no significant effect.”
Brogan stated: “This signals that Connecticut is symbolically opposed to cryptocurrency and to all the states that have established Bitcoin reserves.”
US States Accepting and Rejecting Cryptocurrency Reserves
While some US states have passed legislation to establish cryptocurrency reserves, others have outright rejected it, either through lawmakers in the legislature or the governor’s office.
At the federal level, Trump signed an executive order to create a “Strategic Bitcoin Reserve” and a “Digital Asset Stockpile” in March, with advisers suggesting different ways to expand the government’s crypto holdings beyond digital assets seized in Justice Department cases.
In 2025, lawmakers in South Dakota, Montana, Pennsylvania and other states failed to pass legislation for Bitcoin reserves. However, Texas Governor Greg Abbott approved a bill to create a crypto reserve in June, and New Hampshire Governor Kelly Ayotte greenlit similar legislation in May.
