Connecticut passes law to ban state investment in bitcoin.

The state of Connecticut has passed a law to prohibit the state from investing in Bitcoin (BTC) or in any other virtual currency.

Connecticut has become the latest state to ban state-level investment in Bitcoin (BTC) and other crypto assets.

The state's House of Representatives and Senate have both passed HB7082, officially titled “An Act Concerning the Regulation of Virtual Currency and State Investments.”

The bill, which was passed unanimously by both chambers of the legislature, will now go to Governor Ned Lamont, who is expected to sign it into law.

The legislation imposes a comprehensive ban for the state and local governments from investing into crypto assets. The law also introduced new stringent regulations for crypto business within Connecticut’s jurisdiction.

Among other things, the bill will require payment applications that handle crypto assets in Connecticut to verify parental consent for users who are under the age of 18. It will also require crypto businesses to comply with strict anti-money laundering (AML) regulations.

The bill also includes provisions to regulate money transmitters, which are businesses that transmit money or credit on behalf of others. The bill will require money transmitters to register with the state and to comply with certain reporting requirements.

The bill is a response to the growing popularity of crypto assets in recent years. Several states, including Louisiana and Wyoming, have been considering legislation to allow their state treasurers to invest in Bitcoin.

However, some experts have warned that such investments could be risky and that they may not be in the best interests of taxpayers.

"I urge members of the House to vote against this amendment," said Representative Sean Scanlon, a Democrat who chairs the Finance, Revenue, and Bonding Committee. "It's a distraction from the real issues facing our state."

Despite the warnings, the amendment was approved by a vote of 135 to 0. The bill will now go to the Senate for consideration.

The bill is expected to be hotly debated in the coming weeks, as both supporters and opponents of crypto investment are expected to mobilize.

Ultimately, the decision of whether or not to allow state-level investment in Bitcoin will rest with the state legislature.

The post Connecticut becomes latest state to ban state investment in Bitcoin appeared first on Blockchain News, Analysis, Prices, Broker, Jobs & More in 2023.

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