Connecticut bans use of crypto in government operations

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Governor Ned Lamont Signed a Law Prohibiting Connecticut State Government from Accepting or Establishing Crypto Reserves, a Move Contrary to the National Trend.

Connecticut Governor Ned Lamont enacted House Bill 7082, a groundbreaking law aimed at completely restricting the use of digital assets in state government activities. This move came after the bill received overwhelming support from both the State House and Senate, demonstrating rare political consensus locally.

Key provisions of the law include prohibiting state government from accepting or requiring payment in cryptocurrency and forbidding the purchase, holding, investment, or establishment of crypto reserves. The new law will officially take effect on October 1st.

Draft of Bill 7082 on 6/30. Source: LegiScan

According to experts, this law is not merely an administrative measure but also a clear political message, positioning Connecticut in opposition to the developing trend at the federal level and in many other states. Lawyer Aaron Brogan, founder of Brogan Law, assessed that the law does not create significant economic impact but is a clearly symbolic statement.

"Connecticut is sending a powerful message that they oppose cryptocurrency and disagree with states that have established Bitcoin reserves," Mr. Brogan said. This stance reflects the increasingly deep divide between the Democratic and Republican parties on digital asset policy, especially in the context of President Donald Trump's public support for this sector.

Connecticut's decision has further highlighted the increasingly apparent legal fragmentation across the United States. While Connecticut and some other states choose a cautious approach, states like Texas and New Hampshire are actively exploring the potential of digital assets.

Recently, Texas Governor Greg Abbott and New Hampshire Governor Kelly Ayotte signed laws to establish crypto reserves for their states. Meanwhile, similar bills in South Dakota, Montana, and Pennsylvania in 2025 failed to pass legislative barriers.

The contrast between state and federal policies became even more apparent when President Donald Trump signed an executive order in March establishing a Strategic Bitcoin Reserve. This move clearly demonstrated strong support from the highest level of the Republican Party. Therefore, the law in Connecticut is seen as a direct response, affirming the stance of a state led by the Democratic Party.

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Disclaimer: The content above is only the author's opinion which does not represent any position of Followin, and is not intended as, and shall not be understood or construed as, investment advice from Followin.
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