Connecticut Governor Ned Lamont has signed a bill into law restricting the use of digital assets in state government, including the establishment of a cryptocurrency reserve.
Details of the New Law
House Bill 7082, signed by Governor Lamont on Monday, imposes strict limitations on the use of cryptocurrencies by state agencies, prohibiting them from "accepting or requiring payment in the form of virtual currency" and "purchasing, holding, investing in or establishing" a crypto reserve. The provisions take effect on October 1.
Reactions to the Bill
Introduced by state Representative Jason Doucette in February, the bill has been supported by proponents who argue for a cautious approach to cryptocurrencies. However, some experts, like Brogan Law founder Aaron Brogan, state that the bill will do little to offer substantive change. He expressed that it "signals that Connecticut is symbolically opposed to cryptocurrency, and to all the states that have established Bitcoin reserves."
Crypto Reserve Landscape in the U.S.
There is a clear divide among U.S. states regarding the establishment of cryptocurrency reserves. While some states like Texas and New Hampshire have passed bills for crypto reserves, others such as South Dakota and Montana have failed similar legislative attempts. At the federal level, President Donald Trump signed an executive order to create a "Strategic Bitcoin Reserve."
The legislation enacted in Connecticut showcases the growing divide among states regarding cryptocurrency usage in government, highlighting the need for continued discourse and regulation in the space.
