Connecticut lawmakers unanimously passed legislation prohibiting state and local government divisions from accepting cryptocurrency payments or holding crypto assets.
House Bill 7082, “An Act Concerning Various Revisions to the Money Transmission Statutes, State Payments and Investments in Virtual Currency…”, received bipartisan support and was signed into law Tuesday.
The bill explicitly states that “neither the state nor any political subdivision of the state” shall accept cryptocurrency payments or purchase crypto assets. It joins only a few US states explicitly rejecting crypto asset reserves.
Democrats introduced legislation
The bill originated in February 2025 from Connecticut’s joint committee on banking and was co-sponsored by Democrats Ken Gucker, Patricia Miller, and Matthew Lesser.
The House approved the bill 148-0 (with 3 abstentions) Wednesday, joining previous House votes (105-42 on May 14) that showed near-unanimous support. Observers credit the state’s large Democratic majority and Democrats’ broader criticism of President Donald Trump’s entanglement with digital assets, particularly memecoins.
‘Does nothing of substance’?
Industry observers suggest the ban stems from concerns over volatility and regulatory complexities, but caution it may hinder innovation.
Citing remarks from Brogan Law founder Aaron Brogan, some analysts argue the ban measures “do nothing of substance” and primarily reflect political polarization. Brogan stated it “symbolically opposes cryptocurrency” and noted state legislatures often ban things “not happening anyway to get headlines without actual consequence.”
“This is signaling that Connecticut is symbolically opposed to cryptocurrency,” Brogan said, adding the legislation also includes costly disclosure requirements for private money transmitters, potentially fragmenting professional practices.
Growing State Rejection of Bitcoin Reserves
In the current political climate, particularly under the Trump administration, bills proposing “strategic Bitcoin reserves” have proliferated nationwide. However, similar to Connecticut, legislative action against such reserves is also widespread.
Connecticut passed a ban alongside legislation kills in five other states (Montana, Wyoming, North Dakota, South Dakota, Pennsylvania/May 2024) and proposed bans or delays in Florida (May 2024) and Arizona (May 2024). Earlier actions include Utah (March 2024) and Oklahoma (April 2024). A separate federal bill (MEME Act) proposed restrictions on profiting from memecoins using official positions.
The rapid legislative activity highlights ongoing debates about government acceptance of digital assets juxtaposed with widespread criticism of executive branch interactions with crypto.
