Connecticut General Assembly Bans Cryptocurrency Investments by State Government

Going against the recent trend of state governments in the U.S. pursuing cryptocurrency investments, the Connecticut General Assembly has thrown down a ban against that New England state following suit, even as others pursue digital assets reserves in their fiscal strategies.

Despite the recent trend of U.S. state governments pursuing cryptocurrency investments, the Connecticut General Assembly has decided against that New England state following suit, even as others are including digital assets in their fiscal strategies.

In a bipartisan fashion, both the House and Senate passed a bill this week that prevents any part of the state's government from having the ability to "purchase, hold, invest in or establish a reserve of virtual currency," and it also prohibits accepting crypto payments. This measure, which went largely unmentioned in local reports, comes in response to President Donald Trump's executive order earlier this year directing federal agencies to explore investing in bitcoin

After Trump issued an order to his administration in March to establish a reserve of bitcoin

"As legislative sessions wrap up across the country, we’re proud of the incredible momentum behind pro-Bitcoin and digital asset legislation," said Dennis Porter, the founder of the Satoshi Action Fund that's been advocating for state lawmakers to establish reserves. "Unfortunately, Connecticut has chosen to reject this opportunity—for now. But we remain optimistic. As more states embrace Bitcoin and see the benefits firsthand, we’re confident Connecticut will follow suit."

Porter said North Carolina and Ohio are both still a possibility for reserves this year.

The federal government hasn't yet moved assets into a reserve. The relevant agencies, led by the Department of the Treasury, have been busy trying to account for all of the digital assets held in various corners of the public sector. Once complete, Trump had directed all existing crypto be set aside as a long-term investment but that no taxpayer money be spent to acquire anything more than the government has seized in civil and criminal matters. Bo Hines, one of Trump's top crypto advisers, said at Consensus 2025 in Toronto that there are a lot of ideas on the table for acquiring more bitcoin in budget-neutral ways.In other state crypto legislative matters, California's lawmakers have been working on legislation that could allow digital assets payments in a state pilot program. The bill passed unanimously in its House and was forwarded to the Senate last week.

See Also: New Hampshire Becomes First State to Approve Crypto Reserve Law