Connecticut Governor Ned Lamont has signed a bill limiting the use of digital assets in state operations. The new law means the state will not accept cryptocurrency as payment and will not create crypto reserves.
Restrictions on Crypto in State Operations
On Monday, Lamont approved House Bill 7082, which was passed by the Connecticut House of Representatives and Senate. The consequences of this law will come into effect on October 1 and aim to limit direct participation of the state in cryptocurrency. The law bans the acceptance of payments in virtual currency and the establishment of crypto reserves for operational or investment purposes.
Comparison with Other States
The bill was introduced by state Representative Jason Doucette in February. New requirements also apply to crypto money transmission licensees operating in Connecticut. This sharply contrasts with initiatives in other states, like New Hampshire, which are exploring the establishment of state-run cryptocurrency reserves as part of their financial strategies.
Consequences and Public Reaction
Brogan Law founder Aaron Brogan described Connecticut's actions as largely symbolic in the context of growing national debates on cryptocurrency. He noted that the law would not have a significant impact on market dynamics, stating that 'this is signaling that Connecticut is symbolically opposed to cryptocurrency.' As Connecticut enacts restrictions, other states, like Texas, remain open to the potential of digital assets.
As Connecticut implements its restrictions, it highlights the ongoing debate in the U.S. regarding how digital assets should interact with public finances and governance.
