Connecticut Governor Ned Lamont has signed comprehensive legislation that prohibits the state and its municipalities from accepting, holding, or investing in virtual currencies. House Bill 7082 makes Connecticut one of the most restrictive states regarding digital asset policies.
The new law expands Connecticut’s money transmission statutes to include digital wallets and cryptocurrency kiosks under strict regulatory oversight. Businesses that handle virtual currency on behalf of others must obtain licenses and maintain one-to-one reserves matching customer holdings.
Licensed operators face requirements for detailed consumer risk disclosures, transaction limits, and fraud prevention measures targeting seniors and large transactions. The legislation also mandates receipt issuance for all virtual currency transactions conducted within the state.
Parental controls target youth crypto access
The bill includes provisions restricting money-sharing applications from opening accounts for minors without verified parental consent. These accounts and associated data must be deletable upon request, giving families greater control over children’s financial technology access.
Connecticut’s approach contrasts sharply with pro-cryptocurrency legislation advancing in other jurisdictions. The federal GENIUS Act passed the U.S. Senate in June 2025 with bipartisan support, establishing the first framework for dollar-pegged stablecoins.
Several states have moved in the opposite direction from Connecticut’s restrictive stance. New Hampshire, Arizona, Texas, and North Carolina have introduced or passed legislation allowing their state treasuries to hold Bitcoin and other major cryptocurrencies as fiscal strategy components.
The timing of Connecticut’s ban coincides with growing institutional adoption of digital assets nationally. While Connecticut closes doors to state-level crypto exposure, other jurisdictions position themselves to benefit from potential appreciation in digital asset values.
Connecticut’s money transmission updates create additional compliance burdens for cryptocurrency businesses operating within state boundaries. Companies must now navigate licensing requirements that may not exist in neighboring states with more permissive regulatory frameworks.
The legislation reflects concerns about consumer protection in volatile digital asset markets. Connecticut lawmakers prioritized risk mitigation over potential investment gains that have attracted other state governments to cryptocurrency holdings.
Virtual currency businesses face immediate compliance deadlines under the new regulatory structure. Existing operators must obtain proper licenses or cease operations within Connecticut’s jurisdiction to avoid legal penalties.
The law’s implementation creates a patchwork of state regulations that cryptocurrency companies must navigate. Different rules across state lines could complicate business operations for firms serving multiple jurisdictions simultaneously.
Connecticut’s position may influence other Democratic-led states considering similar restrictions on government cryptocurrency involvement. The legislation provides a template for jurisdictions prioritizing traditional fiscal approaches over digital asset experimentation.
