Connecticut Bans Crypto Investments

While a bunch of US states are jumping on the bandwagon to make legislation crypto-friendly, the state of Connecticut has taken a rather antithetical step.

While a bunch of US states are jumping on the bandwagon to make legislation crypto-friendly, the state of Connecticut has taken a rather antithetical step. Connecticut has passed a law to prohibit the state from investing in Bitcoin (BTC) or in any other virtual currency.

This HB7082 bill, which is officially titled “An Act Concerning the Regulation of Virtual Currency and State Investments,” has levied a ban on the state and local governments from investing in crypto assets.

HB7082 bill bans state, local government investment in bitcoin and other virtual currencies. It also imposes several new requirements on money transmitters.

“The bill prohibits the state and any local government, political subdivision, or instrumentality of the state from accepting, holding, or investing in any virtual currencies. It also prohibits any such entity from using any virtual currency to pay any obligation of the state or any local government, political subdivision, or instrumentality of the state.”

Apart from direct impositions against cryptocurrencies, HB7082 has also introduced new strict laws for crypto businesses within Connecticut’s jurisdiction. In the wake of these regulations, payment applications handling crypto assets in Connecticut are required to verify parental consent for users under the age of 18.

The legislation also requires that crypto businesses must adhere to strict anti-money laundering (AML) compliance.

This move especially goes against the current trends in the US, which show that around 48% of Americans are adding crypto to their retirement savings.

Moreover, when it comes to other jurisdictions, several states have been working to approve Bitcoin and cryptocurrencies as part of their financial reserve plans and so on. For instance, Arizona is set to become the first US state to officially incorporate Bitcoin into its public investment strategy, after the recent passing of the Arizona Strategic Bitcoin Reserve Act by the state legislature. In fact, as many as 20 US states have been pursuing pro-crypto bills. Recently, Louisiana announced that it will form a committee to study artificial intelligence (AI), blockchain, and cryptocurrency.

New Hampshire, on the other hand, has already approved a bill that allows the treasurer to invest up to 5 percent of public funds from the general fund and other authorized funds in these assets, with digital assets limited to those with a market capitalization over $500 billion.

Meanwhile, Alabama, Iowa, and Georgia are some of the states that did pursue crypto bills but have already dropped the idea.

These crypto efforts are especially significant given the adoption of cryptos in the US. A recent study reveals that over half of Gen Z are already investing in retirement funds in crypto, followed closely by Millennials.

Moreover, the appetite for digital assets is only increasing. Sixty percent of respondents in the study said they plan to strengthen their crypto allocations in their retirement savings. Notably, two-thirds of Gen Z investors are planning to expand their crypto investments, which shows a growing belief in the long-term value of cryptocurrencies.