Connecticut Lawmakers Vote to Ban Crypto Use in Government
Connecticut has joined a growing list of U.S. states rejecting the concept of Bitcoin reserves, passing legislation that prohibits government entities from making payments or investments in cryptocurrency.
The bill, House Bill 7082, titled “An Act Concerning Various Revisions to the Money Transmission Statutes, State Payments and Investments in Virtual Currency [.],” was approved unanimously by legislators and signed into law on Tuesday.
What the Law Prohibits
The newly signed bill explicitly states that “neither the state nor any political subdivision of the state” is allowed to receive cryptocurrency payments or purchase crypto assets. The bill also forbids any state crypto asset reserve, keeping Connecticut away from other states that are exploring Bitcoin holdings as part of strategic reserves.
Democratic Strong Support Pushed the Bill
First introduced in February 2025 by the Banking Joint Committee of Connecticut, the bill was sponsored by leading Democrats, including State Representative Ken Gucker and Senators Patricia Miller and Matthew Lesser.
After initial approval in May with 105 ayes and 42 nays, the final vote in favor approved with 148 ayes, no nays, and three abstentions — a rare moment of political unity.
Symbolic Move or Policy Shift?
Some players in the industry have also critiqued the practical impact of the bill. Attorney Aaron Brogan opined the bill “does nothing of substance” and indicated it’s symbolic, not action-oriented.
“This is saying Connecticut is symbolically opposed to cryptocurrency,” Brogan stated, theorizing the move aligns with Democratic opposition to Trump-aligned cryptocurrency trends, like memecoins.
Broader Implications and Disclosure Rules
While the crypto prohibition is directed at government application, the bill also places additional disclosure obligations on private sector money transmitters. Brogan warned the rules would come with compliance expenses similar to California’s data privacy law.
A National Trend Away From Bitcoin Reserves
Connecticut’s action coincides with a trend within U.S. states stepping away from crypto. Montana, Wyoming, and Pennsylvania introduced identical strategic Bitcoin reserve bills in 2025 alone but ended up shooting them down.
Even Oklahoma and Utah have rejected or altered SBR proposals. Florida put its SBR bill on hold indefinitely in May, and Arizona’s governor vetoed two crypto bills.
With Connecticut now part of the opposition, the political rift over state-level crypto investment continues to grow.
