American State Bans Crypto Investments and Payments in Sweeping New Law

Connecticut has officially distanced itself from government adoption of digital assets like Bitcoin. On June 30, Governor Ned Lamont signed House Bill 7082 into law, placing sweeping restrictions on how the state and its agencies can engage with cryptocurrencies.

The new legislation prohibits all Connecticut state agencies from investing in cryptocurrencies, including Bitcoin. It also bars any state entity from accepting digital assets as payment for taxes, fees, or any financial obligations owed to the state.

This effectively eliminates the possibility of Connecticut building a state crypto reserve or integrating blockchain-based payment systems into public infrastructure.

New Compliance Rules for Crypto Businesses

Beyond banning state-level usage, House Bill 7082 also imposes strict new guidelines on businesses operating in the crypto space. Companies offering virtual currency transmission services must now provide clear and prominent disclosures outlining the risks of digital asset transactions.

The law mandates firms warn customers that crypto transactions:

• Are irreversible
• Are frequently used in fraud schemes
• May involve impersonators, scammers, or false claims of identity theft

Can involve high-pressure tactics like threats of jail, fake computer hacks, or urgent cash withdrawal instructions
These warnings aim to protect consumers from rising cases of crypto-related scams and ensure that users are fully informed before engaging in digital currency transactions.

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Connecticut’s Cautious Crypto Stance

While several U.S. states are exploring Bitcoin adoption or state-held crypto reserves, Connecticut’s approach reflects a cautious—and now codified—rejection of state-level participation. The law signals a growing divergence in crypto policy across the U.S., as some states lean into innovation while others tighten restrictions.

For Connecticut, House Bill 7082 sets a clear tone: when it comes to state involvement in digital assets, the door is firmly closed.

Kosta Gushterov

Kosta has been working in the crypto industry for over 4 years. He strives to present different perspectives on a given topic and enjoys the sector for its transparency and dynamism. In his work, he focuses on balanced coverage of events and developments in the crypto space, providing information to his readers from a neutral perspective.