Connecticut Governor Lamont Enacts Legislation Prohibiting State Investments in Digital Assets

Connecticut Governor Ned Lamont has formally enacted a comprehensive “Bitcoin Reserve Ban” that forbids the state from accepting, holding, or investing in digital assets.

The bill, identified as H.B. 7082, was approved unanimously by both the state House of Representatives and Senate without any dissenting votes.

Source: cga.ct.gov

The new statute explicitly prohibits Connecticut and its governmental subdivisions from accepting virtual currency as a form of payment or creating any type of digital asset reserve.

This positions Connecticut as one of the most stringent states regarding cryptocurrency adoption, sharply contrasting with the increasing trend of Bitcoin reserve legislation throughout the United States.

The timing is particularly noteworthy, as 26 states have introduced 47 Bitcoin reserve bills, with Texas, New Hampshire, and Arizona already having established state-level Bitcoin reserve frameworks.

Connecticut’s choice effectively excludes it from the national dialogue concerning strategic crypto adoption for public treasuries.

The legislation encompasses more than just investment limitations, extending to comprehensive regulations governing money transmission.

Crypto enterprises are now required to provide detailed disclosures regarding material risks, including alerts about potential fraud, market volatility, and the irreversible nature of transactions.

Additional safeguards necessitate parental verification for users under the age of 18.

NEW: Connecticut Governor Ned Lamont officially signed into law the state’s ‘Bitcoin Reserve Ban’ today.
Connecticut is now prohibited from accepting, holding, or investing in digital assets. https://t.co/vIXIkprdHI

— Bitcoin Laws (@Bitcoin_Laws) July 1, 2025

States Rally Around Bitcoin Adoption Despite Federal Uncertainty

State-level crypto adoption is rapidly expanding and stands in stark contrast to this recent move by Connecticut.

Texas is at the forefront of this movement, with Governor Greg Abbott signing Senate Bill 21, which establishes the nation’s first state-funded Bitcoin reserve that is entirely separate from the state treasury.

Texas has officially joined the small but growing list of U.S. states moving toward on-chain finance, passing a bill that protects Bitcoin reserves.#Texas #Bitcoinhttps://t.co/kBh6nFgROs

— Cryptonews.com (@cryptonews) June 22, 2025

Texas Comptroller Glenn Hegar will manage the fund, with companion legislation HB 4488 safeguarding reserves from routine fund reallocations.

Senator Charles Schwertner spearheaded the initiative, asserting, “the state of Texas should have the option of evaluating the best performing asset over the last 10 years.“

New Hampshire also reached a significant milestone by becoming the first state to enact laws allowing public funds to be invested in Bitcoin reserves.

Governor Kelly Ayotte signed legislation permitting up to a 5% allocation in digital assets with a market capitalization exceeding $500 billion, effectively targeting Bitcoin specifically.

California is also advancing its adoption through Assembly Bill 1180, which passed unanimously with 78 Assembly Members supporting pilot programs for digital asset fee payments.

The Department of Financial Protection and Innovation will establish frameworks for cryptocurrency-based government transactions by 2025.

Arizona, however, presents a more complex scenario, with Governor Katie Hobbs vetoing comprehensive Bitcoin reserve legislation while simultaneously signing HB 2749, which creates frameworks for managing unclaimed digital assets.

The state has several active bills, including revised HB2324, which recently passed Senate reconsideration.

Corporate adoption continues to accelerate regardless of state-level policies, with 252 entities currently holding Bitcoin, accounting for approximately 16.57% of the total supply.

Source: BitcoinTreasuries

Strategy holds the largest position at 597,325 BTC valued at $63.93 billion, with the latest acquisition being 4,980 Bitcoin for $531.1 million, at an average price of around $106,801 per bitcoin.

Source: SaylorTracker

Regulatory Patchwork Creates Compliance Challenges

Importantly, the new Connecticut law imposes extensive compliance requirements, including customer identification protocols, transaction receipt mandates, and robust risk disclosure frameworks that surpass federal minimums.

Money transmission licensees are required to maintain virtual currency holdings equivalent to customer obligations while prohibiting unauthorized use of controlled assets.

The legislation clarifies that virtual currency held by licensees constitutes property interests of claimants, providing additional legal protections for consumers.

Several states have ceased their efforts to reserve Bitcoin, resulting in an inconsistent national landscape.

Florida withdrew House Bill 487 and Senate Bill 550 during legislative sessions, joining Wyoming, South Dakota, North Dakota, Pennsylvania, Montana, and Oklahoma in unsuccessful adoption attempts.

On a positive note, some other states are still progressing. For example, Michigan introduced House Bill 4087, which allows for a 10% treasury allocation to cryptocurrencies.

The Michigan House Bill was introduced by Representatives Bryan Posthumus and Ron Robinson to push for a strategic Bitcoin reserve.#BitcoinReserve #Michigan https://t.co/fXJSPOQ6gs

— Cryptonews.com (@cryptonews) February 14, 2025

Simultaneously, Ohio advanced Senate Bill 57, which establishes exclusive Bitcoin reserve funds with mandatory five-year holding periods.

Likewise, North Carolina passed legislation allowing a 5% investment allocation pending validation by third-party oversight.

Additionally, West Virginia’s Inflation Protection Act proposes a 10% treasury allocation to digital assets with a market capitalization exceeding $750 billion, effectively restricting investments to Bitcoin and select stablecoins.

The legislation positions precious metals and cryptocurrencies as hedges against inflation resulting from government spending deficits.

Oklahoma has also approved the Strategic Bitcoin Reserve Act through the House Committee with a 12-2 vote, permitting a 10% public fund allocation to digital assets that meet market capitalization criteria.

The state previously enacted Bitcoin Rights legislation that safeguards self-custody rights and transaction freedoms.

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