Connecticut has passed a law banning state agencies from investing in cryptocurrencies and introducing strict disclosure requirements for firms operating in the field.
Main Content of the Law
On June 30, Governor Ned Lamont signed a bill prohibiting all state agencies from investing in cryptocurrencies, including Bitcoin. Lawmakers aim to shield consumers from the unpredictable nature of digital assets. The bill, known as House Bill 7082, passed unanimously through the state legislature.
Disclosure Requirements
The legislation also imposes strict disclosure requirements on companies operating with virtual currencies. Firms must clearly warn customers about the irreversible nature of transactions and common scams involving identity theft, impersonation, and social engineering.
Comparison with Other States
While Connecticut opts for a cautious approach to cryptocurrencies, states like Texas, Arizona, and New Hampshire are moving toward incorporating Bitcoin into their public reserves. Texas recently approved legislation allowing taxpayer funds to be allocated toward Bitcoin holdings. Across the U.S., 48 proposals related to state-managed crypto reserves are under consideration, highlighting the growing divide over how government entities should engage with digital currencies.
Thus, the passage of new legislation in Connecticut reflects growing concerns regarding the risks associated with cryptocurrencies and the necessity of consumer protection within an outdated regulatory framework.
