Connecticut Bans Bitcoin – New law HB7082 makes it illegal to hold or invest in Bitcoin

On Tuesday, the state of Connecticut passed a controversial bill banning Bitcoin, making it illegal for citizens to hold or invest in Bitcoin and other virtual currencies.

The state of Connecticut has banned Bitcoin, making it illegal for residents to hold or invest in the cryptocurrency. The bill, HB7082: An Act Concerning the Regulation of Virtual Currency and State Investments, was passed by the state legislature on Tuesday.

The bill, which still requires the governor’s signature, imposes stricter anti-money laundering policies on crypto-related businesses and requires crypto businesses engaged in money transmission to disclose all associated risks to consumers.

The legislation also mandates that apps handling cryptocurrencies must verify parental approval for users under the age of 18 and ensures that state-level crypto activity is closely regulated to protect government funds from being exposed to crypto market risks.

Connecticut lawmakers say the bill will create a safer and more transparent digital asset space.

"This legislation strikes a balance between encouraging innovation in the virtual currency market and protecting consumers from abuse," said state Senator Stephen Cassano, who co-chairs the banking committee.

"It is a bipartisan and bicameral effort that will make the digital asset space safer and more transparent for everyone involved."

The bill's passage comes amid a broader push by U.S. lawmakers to regulate the crypto industry.

The upcoming GENIUS Act and stablecoin legislation are set to be discussed by U.S. Senators on Wednesday, June 14. These efforts, led by Trump-aligned lawmakers, aim to create a unified national approach to stablecoins and digital asset oversight.

The initiative follows the bipartisan support for a comprehensive crypto bill in the House, which aimed to establish a clear regulatory framework for the industry.

These developments highlight the rapidly evolving landscape of crypto policy in the U.S., with a focus on setting standards for the digital asset space and promoting responsible financial practices.

These efforts are part of a broader trend in the U.S. to regulate the crypto industry, which has seen rapid growth in recent years.

As the industry continues to mature, there is a need for clear and consistent rules to govern the crypto ecosystem and ensure its long-term stability.

The bill will now go to the governor's desk for his signature. It is expected to take effect on October 1.

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