The post Connecticut law prohibits the state from investing in Bitcoin (BTC) appeared on BitcoinEthereumNews.com.

Connecticut passed HB-7082, which prohibits the state from accepting, holding, or investing in Bitcoin and other digital assets. The bill passed the House and Senate unanimously and introduced new requirements for crypto-related remittance agencies to verify parental consent for users under 18 years. The bill, officially titled “An Act Concerning the Regulation of Virtual Currency and State Investments,” imposed a comprehensive ban on the state and local governments from investing in crypto assets. Separate from money transmission, the bill prohibited Connecticut and its political subdivisions from accepting or requiring payment in the form of virtual currency or purchasing, holding, investing in, or establishing a digital currency reserve. It also stipulated that crypto businesses must adhere to strict anti-money laundering (AML) compliance.  The bill also regulates minors’ access to certain money-sharing applications by imposing restrictions and duties on those businesses. It generally prohibits any business, beginning on October 1, 2025, from allowing anyone to sponsor, open, or establish a money-sharing application account for a minor unless the business receives an attestation from the person stating that he or she is the minor’s parent. HB7082 imposes two restrictions on crypto custody and control  The new law imposed two restrictions on the handling of crypto by businesses that engaged in the transmission of money within Connecticut by receiving, sending, storing, or maintaining custody or control of virtual currency.  First, it prohibited the businesses from selling, transferring, assigning, lending, hypothecating, pledging, or otherwise using or encumbering virtual currency stored, held, controlled, maintained by, or under the custody or control of the business on a person’s behalf—except for the sale, transfer of ownership, or assignment at the person’s direction. Second, it limited the current law’s provisions authorizing these crypto-related businesses to use designated agents to provide money transmission services on their behalf.  However, regardless of…

---

Filed under: News - @ June 11, 2025 10:23 am