No Bitcoin Allowed: Connecticut Bans Crypto in State Government

Last Updated on July 2, 2025

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Key Takeaways:

  • Connecticut has passed a law banning the use of cryptocurrency in state government operations, effective October 1, 2025.
  • The law prohibits the state from accepting, holding, or investing in digital assets or establishing crypto reserves.
  • This contrasts with moves by other states like Texas and New Hampshire that are advancing pro-crypto legislation.

Connecticut Governor Ned Lamont has signed House Bill 7082, banning the use of cryptocurrency in state government operations.

The law, which takes effect on October 1, 2025, prohibits the state from accepting crypto as payment or establishing any form of digital asset reserve.

It also introduces new regulations for crypto money transmission licensees.

Introduced by Representative Jason Doucette, the bill passed with strong legislative support and positions Connecticut in contrast to other U.S. states exploring state-held Bitcoin reserves.

Legal analyst Aaron Brogan described the measure as largely symbolic, emphasizing its political message rather than practical effect.

The law reflects a growing national debate over government involvement in digital assets.

While federal discussions have proposed creating a Strategic Bitcoin Reserve, only a few states like Texas and New Hampshire have advanced similar plans.

Others, such as South Dakota and Pennsylvania, have failed to pass related legislation.

Connecticut’s move signals a cautious or oppositional stance amid rising state-level interest in holding or utilizing crypto within public finance frameworks, potentially reinforcing a broader ideological divide over the role of digital assets in government.

About The Author

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Co-Founder / Managing Editor

Adam Morris, the co-founder of Crypto Head and a respected crypto expert, offers insightful commentary and analysis on cryptocurrency, NFTs, and the evolving digital landscape.

His extensive experience and features in top-tier publications like Forbes and CNN underscore his deep understanding of the crypto world and its future potential.

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