Connecticut Bans Government Crypto Involvement in Sweeping New Law

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Connecticut has implemented a comprehensive prohibition on state and local government cryptocurrency activities through newly passed legislation.

The law, designated as Public Act No. 25-66, received unanimous approval in both legislative chambers before being enacted this week.

The statute explicitly prohibits all government entities within the state from:

• Purchasing or holding cryptocurrency assets.
• Making any cryptocurrency investments.
• Creating cryptocurrency reserves.
• Accepting digital currency as payment.

Additionally, the legislation imposes new requirements on cryptocurrency businesses operating in Connecticut. Money transmission services must now provide prominent risk disclosures in English, while platforms must implement age verification systems to prevent minors from accessing services without parental consent.