Key Takeaways
- Connecticut passed an anti-Bitcoin law, banning the state from investing in crypto assets.
- The bill was unanimously passed in the House and Senate without any opposition.
- The decision comes when 28 US states have proposed legislation to allow them to invest in Bitcoin.
Amid a growing race among the states of America to build a state-level strategic Bitcoin reserve, Connecticut has abandoned the popular investment choice.
Connecticut passed HB7082, which prohibits the state from accepting, holding, or investing in virtual currencies.
Connecticut Ditches Bitcoin Reserve Plans
Connecticut has taken an opposite approach to Bitcoin investments compared to the federal government or most other states.
On May 30, 2025, the Connecticut General Assembly enacted House Bill HB7082 by unanimously voting 148-0 in the House and 36-0 in the Senate. It significantly amended the state’s money transmission regulations and was signed into law on June 11, 2025.
The new law restricts state and local government investment in cryptocurrencies and regulates virtual currency activity.
The bill introduced a new definition for entities providing virtual currency control services, clarifying the scope of regulated activities.
Any business handling virtual currency transactions, including digital wallets, crypto exchanges, and Bitcoin ATMs, must obtain a state license from the Connecticut Banking Commissioner.
Connecticut’s conservative approach to crypto investments comes amid a growing hunger among neighbouring states to create their own Bitcoin reserve.
U.S. States That Said Yes to Bitcoin Reserve
In the U.S., 27 out of the 50 states introduced legislation to allow the state treasury to hold a portion of its public funds in Bitcoin or other high-market-capitalization cryptocurrencies.
Connecticut’s HB-7082 adopts a conservative stance, even though states like North Carolina (HB92), Arizona (SB 1025, SB 1373), and New Hampshire enact and approve Bitcoin reserve plans.
Under the Trump administration, the federal government has indicated support for cryptocurrencies through initiatives like a Strategic Bitcoin Reserve.
New Hampshire passed HB 302 into law, making it the first state in the U.S. to create a state-level Bitcoin and Digital Assets Reserve Fund.
The legislation allows the state treasurer to purchase Bitcoin and other digital assets with a market cap above $500 billion to diversify the state’s financial reserves.
Arizona became the second state in the U.S. to approve a Bitcoin reserve, with Governor Katie Hobbs signing HB 2749 into law.
However, the law does not authorize direct investment in cryptocurrencies; the reserve will be funded through unclaimed crypto assets, airdrops, and staking rewards, mirroring a model used by some federal agencies.
Prashant Jha is a seasoned crypto journalist based in Delhi, India, with a Bachelor’s Degree in Computer Science Engineering. Passionate about the evolving world of blockchain and cryptocurrencies, he has been a dedicated voice in the industry since 2018. Prashant’s expertise lies in regulatory reporting, where he unravels complex legal and financial developments with clarity and precision. Before joining CCN in 2024, he honed his craft at Cointelegraph, establishing himself as a trusted name in crypto journalism.
His coverage spans major industry events, including the high-profile collapses of FTX, Three Arrows Capital (3AC), and LUNA, offering readers insightful analyses of their regulatory and market implications. Prashant’s technical background enables him to bridge the gap between intricate blockchain technology and its real-world applications, making his work accessible to novices and experts.
Beyond his professional pursuits, Prashant is an avid music enthusiast, often exploring diverse genres to unwind. A sports lover, he has a particular passion for cricket and frequently engages in discussions about the game. His multifaceted interests and sharp journalistic instincts make him a valuable contributor to CCN, where he continues shaping the crypto landscape's narrative.
