Connecticut Bans Government Investment in Bitcoin and Other Cryptocurrencies

Connecticut has approved legislation banning government investment in Bitcoin and other cryptocurrencies, triggering debate across the crypto sector.

Connecticut has approved legislation that will ban state and local authorities from investing in Bitcoin (BTC) and other cryptocurrencies.

The new law, which is set to take effect in October 2025, places the state among the strictest on crypto regulation.

House Bill 7082 prohibits state and municipal bodies from buying, holding, or accepting any digital assets.

This broad scope is in stark contrast to states like Florida and Texas, which have been introducing measures to support crypto firms and technologies.

Lawmakers approved the bill on Wednesday, June 10, with reports from Benzinga and local news outlet CT Insider.

The legislation comes amid a broader crackdown on crypto in China, which has banned crypto trading and mining activities.

The new law will also impose stricter rules on money services that deal with digital assets.

Those in support of the law say it will help to protect taxpayers from unpredictable losses.

One lawmaker, who voted in favor of the bill, expressed concerns about the potential systemic risks of crypto exposure within public funds.

However, critics of the bill argue that it will stifle innovation and prevent the state from reaping the economic benefits of cryptocurrency in the long term.

The bill's opponents also noted that it may face legal challenges.

Bitcoin Price Above Key Range

Elsewhere, Bitcoin price closed above a major resistance range at $90,000 to $108,000, according to crypto analyst Daan Crypto Trades.

A local retest has now confirmed the range breakout, which supports the case for continued upward momentum. The analyst said price closes, not wicks, are essential to sustain the bullish trend.

At the time of writing, CoinGecko data shows BTC trading at $109,330, showing a slight 0.13% down in 24 hours but a 3.35% rise over the past week.

Traders are now focusing on maintaining this level ahead of macroeconomic updates that could affect the crypto price momentum.

CPI Data in Focus for Crypto Traders

Crypto traders are awaiting today's Consumer Price Index (CPI) data, which is due at 8:30 AM ET.

Analyst Ash Crypto said the market is expecting a year-over-year rise of 2.5%. If the reading comes above this level, it could trigger a sharp market pullback.

An increase above 2.5% would mark the biggest monthly jump in 2025, placing more pressure on the Federal Reserve to continue its monetary tightening policies.

If, however, inflation remains flat or pulls back from last month's 2.3% print, then markets could be set for a rally, especially in crypto and equities.

Traders are anticipating heightened volatility in the coming days, with next week's Federal Open Market Committee (FOMC) meeting also adding to the uncertainty.