Connecticut restricts crypto utilization by the state and prohibits investments in digital currencies under comprehensive new legislation.
Connecti-No to Crypto: State Bans Public Bitcoin Reserve
Connecticut has taken a stark stance against virtual currencies with the passing of HB 7082, banning state-level use, investment, or custody of any digital coin. Effective October 1, the law prohibits the state and its political subdivisions from dealing with virtual currencies, whether it's paying in these digital pennies, buying, holding, investing, or creating a Bitcoin hoard.
On June 10, Connecticut legislators have collectively voted to slam the digital door on state-sponsored crypto initiatives, including (but not limited to) a sovereign bitcoin stash. This decision is a deviation from the pro-crypto wave sweeping across other U.S. states.
The new law, known as Public Act 25-66, expanded Connecticut's money transmission laws with these comprehensive crypto restrictions. A broad definition of "virtual currency" encompasses most cryptos currently in circulation today, as defined in section 36a-596 of the state's general statutes.
Besides the ban, HB 7082 also introduces stricter regulations for private-sector money transmitters involved with virtual currencies. Businesses dealing in digital wallets or crypto kiosks are required to be licensed and adhere to stringent financial safeguards, including full collateral to back virtual currencies held for customers, transparent consumer risk disclosures, fraud protection measures, transaction limits, and receipt requirements.
Meanwhile, in neighboring states, the crypto argument isn't as one-sided. Arizona and New Hampshire have taken steps towards establishing Strategic Bitcoin Reserves.
Texas is still on the cusp of joining the crypto club, with Senate Bill 21 (SB 21), the Texas Strategic Bitcoin Reserve and Investment Act, awaiting Governor Greg Abbott's signature. This bill aims to create a state-managed Bitcoin stash, allowing Texas to buy, hoard, and control crypto assets using public funds. The state comptroller would oversee the reserve, and its funds would be acquired through legislative appropriations, revenue streams, investment returns, and voluntary contributions.
In comparison, Arizona took the first step by passing the Strategic Bitcoin Reserve bill, leaving only the governor's signature to seal the deal. However, details about New Hampshire's pursuit of a Strategic Bitcoin Reserve remain vague at the moment.
- Despite Connecticut's ban on state-level involvement with virtual currencies, other U.S. states like Arizona and New Hampshire are considering the establishment of Strategic Bitcoin Reserves.
- Connecticut's new law, Public Act 25-66, not only prohibits the state from dealing with digital currencies but also imposes stricter regulations on private-sector businesses dealing in digital wallets or crypto kiosks.
- In wake of Connecticut's decision to slam the digital door on state-sponsored crypto initiatives, Texas' Senate Bill 21, the Texas Strategic Bitcoin Reserve and Investment Act, awaits Governor Greg Abbott's signature, aiming to create a state-managed Bitcoin stash.
- HB 7082, Connecticut's new law, expands the state's money transmission laws with far-reaching crypto restrictions, applying to most cryptocurrencies currently in circulation, as defined in section 36a-596 of Connecticut's general statutes.
- While Connecticut has taken a stark stance against virtual currencies, the rapidly evolving world of finance and business, as well as politics and general news, continues to discuss and debate the future of cryptocurrencies like Bitcoin, defi, ICOs, dex, tokens, and wallets.
