On Tuesday, the state of Connecticut passed a controversial bill banning Bitcoin, making it illegal for citizens to hold or invest in Bitcoin and other virtual currencies. The bill, officially titled HB7082: “An Act Concerning the Regulation of Virtual Currency and State Investments,” marks a major shift in crypto policy.
1. Crypto Risk Disclosure Required
Under HB7082, crypto businesses engaged in money transmission must disclose all associated risks to consumers. This provision aims to protect investors from potential losses in the volatile crypto market.
2. Parental Consent for Minors
Apps handling cryptocurrencies must now verify parental approval for users under the age of 18, adding a layer of safety for younger users.
3. Protecting Public Funds
The bill ensures that state-level crypto activity is closely regulated to protect government funds from being exposed to crypto market risks.
The bill enforces strict anti-money laundering (AML) policies. All crypto-related businesses must comply with regulations designed to prevent illicit financial activity, a move that Connecticut lawmakers say will make the digital asset space safer and more transparent.
While Connecticut is cracking down, other US states are racing to build Bitcoin reserves:
These states are exploring strategic Bitcoin reserves (SBRs) in line with Donald Trump’s pro-crypto stance. Lee Bratcher, president of the Texas Blockchain Council, said:
“Bitcoin’s long-term potential as a store of value aligns with our state’s history of making smart, diversified investments in emerging assets.”
Connecticut isn’t alone in backing away from crypto. A growing number of US states have recently dropped or paused crypto-related legislation, including:
The reason? Bitcoin’s price volatility and doubts over long-term stability.
Despite state-level setbacks, the U.S. is preparing for federal-level crypto reform. The upcoming GENIUS Act and stablecoin legislation are set to be discussed by U.S. Senators on Wednesday, June 12. These efforts, led by Trump-aligned lawmakers, aim to create a unified national approach to stablecoins and digital asset oversight.
As Connecticut bans Bitcoin, the crypto landscape across the U.S. continues to shift. With federal laws like the GENIUS Act and states like Texas building reserves, the divide between crypto-friendly and crypto-cautious regions is growing.
Connecticut’s new law aims to protect state funds from crypto market volatility by banning government investment. This reflects a cautious approach to maintain financial prudence and stability, even as other states explore crypto reserves.
Federal legislation like the GENIUS Act, aiming for unified national stablecoin oversight, could potentially preempt or set standards that influence how Connecticut’s state-level regulations interact with broader crypto policy.
The parental consent requirement aims to protect minors from financial risks and addiction in crypto. Concerns might include the practicality of age verification for apps and balancing protection with access to digital literacy.
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