While various U.S. states are passing bills to form a strategic Bitcoin reserve (SBR), Connecticut passed a new legislation to ban state investment in Bitcoin on June 11, 2025.
Connecticut Says No To Bitcoin
Connecticut has passed HB 7082, which is a major update to its money transmission laws with strict new rules for crypto businesses and payment apps.
What does HB 7082 say?
- Licensing Requirements: Any company handling crypto transactions must now get a state license, including digital wallets, exchanges, and Bitcoin ATMs.
- Strict Financial Rules: Crypto services must hold 1:1 reserves and provide clear risk warnings to users. It means that they can not lend out customer funds.
- Fraud Protection: Extra safeguards are required for seniors and large transactions to prevent scams.
- No Government Crypto Use: State and local agencies can not accept or invest in cryptocurrency.
The new legislation will also impose strict rules for payment applications like Venmo or Cash App. Minors can not open accounts without verified parental consent.
The law is expected to protect consumers by bringing tough regulations to crypto and digital payments.
The move comes amid the historical rally in the biggest cryptocurrency. At the time of publication, Bitcoin (BTC) is currently trading around $109,800 with a 3.67% hike in a week.
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