In brief
- Connecticut has passed the strictest cryptocurrency law in the U.S., prohibiting all state and local government bodies from purchasing, holding, or investing in virtual currencies.
- The new law also mandates "bold" fraud warnings for crypto businesses, requires disclosure of all material risks, and overhauls money transmission statutes statewide.
- Contrary to this, 31 Bitcoin reserve bills remain active in 16 states, with New Hampshire, Arizona, and Texas being the most recent and well-documented cases.
The Den's Crypto Corner
Connecticut Prohibits Cryptocurrency Purchases by State Government
While many states scramble to establish Bitcoin reserves, Connecticut has slammed the brakes. Connecticut's legislature, in a unanimous vote on Tuesday, passed House Bill 7082, now officially known as Public Act No. 25-66. This marked the most extensive ban on government crypto investments in the nation.
The comprehensive legislation explicitly bars government entities from establishing a virtual currency reserve and prohibits accepting crypto as payment for any amounts due to the state or its political subdivisions.
This restrictive approach sets Connecticut apart and effectively blocks any future state-sponsored digital asset initiatives.
Beyond investment prohibitions, the legislation introduces stringent consumer protection measures. Crypto businesses engaged in money transmission must disclose "all material risks associated with virtual currency."
Mandatory warnings stating, "LOSSES DUE TO FRAUDULENT OR ACCIDENTAL TRANSACTIONS MAY NOT BE RECOVERABLE AND TRANSACTIONS IN VIRTUAL CURRENCY ARE IRREVERSIBLE" are required to be displayed in bold.
Additional protections include verification requirements for users under 18 and comprehensive disclosure requirements for virtual currency transactions.
To further clamp down on crypto use, the law overhauls money transmission statutes, introduces new definitions around digital wallets, control persons, and kiosks, and requires state-licensed firms to adopt rigorous compliance frameworks.
Price data by BTC price
US State Bitcoin Reserves
Connecticut's conservative stance places it at odds with a growing number of states welcoming crypto as a strategic asset.
The legislative divide shows the increasing disagreement over crypto's role in government finances, with proponents citing portfolio diversification benefits while opponents voice concerns about volatility and fiduciary responsibility.
Thirty-one bills related to state Bitcoin reserves are still in progress in 16 states, with Texas, Arizona, and New Hampshire being the most recent cases. Despite rejections in eight states, some lawmakers have pledged to revisit proposals in the future.
The Daily Dive Newsletter
As of mid-June 2025, official sources do not provide a comprehensive, up-to-date public record listing all 16 states with specific Bitcoin reserve bills. Instead, reporting and official sources primarily focus on the recent passage of Bitcoin reserve-related legislation in Texas, Arizona, and New Hampshire, as well as recent federal-level actions under the Trump administration.
- Texas: Senate Bill 21 (SB 21), the "Texas Strategic Bitcoin Reserve and Investment Act," has passed both houses of the Texas Legislature and awaits final approval from Governor Abbott after clearing a necessary legislative conference due to amendments. The bill would create a state-managed Bitcoin reserve fund, allowing investment in high-market-cap cryptocurrencies[2][3][4].
- Arizona and New Hampshire: Both states have previously adopted or are in the process of adopting Bitcoin as part of their state investment strategies, making Texas the third U.S. state to pursue such a policy[3][4].
- Other States: While rumors or legislative interest may exist in additional states, only Texas, Arizona, and New Hampshire are widely cited in current news as having active or recently passed Bitcoin reserve legislation or policy action[3][4]. There is no official or media confirmation of Bitcoin reserve bills being "still active" in 13 other states as of June 2025.
- Connecticut has passed House Bill 7082, Public Act No. 25-66, effectively prohibiting state and local government entities from investing in virtual currencies like Bitcoin (BTC), thereby setting a restrictive approach towards crypto investments.
- The law also enforces stringent consumer protection measures, mandating crypto businesses to disclose all material risks associated with digital assets and display bold fraud warnings for investors.
- In contrast, the states of Texas, Arizona, and New Hampshire are actively embracing crypto as part of their state investment strategies, with Texas' Senate Bill 21 awaiting final approval to establish a state-managed Bitcoin (BTC) reserve fund.
- This legislative divide over crypto's role in government finances highlights a growing agreement between proponents who cite portfolio diversification and opponents concerned about volatility and fiduciary responsibility.
- Despite rejections in several states, proponents are pledging to revisit crypto investment proposals in the near future, as 31 Bitcoin reserve bills remain active in 16 states, with Texas, Arizona, and New Hampshire being the most well-documented cases as of June 2025.
