Connecticut Throws a Fit and Bans the Townsfolk from Diggin’ into Bitcoin! 🚫💰

The great state of Connecticut, in its infinite wisdom—or maybe just its stubbornness—has gone and passed Bill HB7082, which whips out the ol’ banhammer on any state investments in that shiny digital gold, Bitcoin, and the like. Yep, no more of Uncle Sam’s piggy bank to hold those wild virtual coins now.

This here decision is about as popular as a skunk at a lawn party and runs contrary to what most other states are up to—embracing or even dallying with these newfangled cryptocurrencies.

Connecticut Tells Bitcoin to Clear Out of the County

By the powers vested in them, the state legislatures hammered out HB7082 so that Connecticut can’t have any part of that “virtual currency” nonsense. The law says the state can’t accept, hold, or play with Bitcoin in any shape or form.

And would you believe it? Both the Senate and House—united like a band of brothers—gave it their seal of approval without so much as a single nay. Guess they’re as stubborn as a mule on this matter.

NEW: Connecticut passes law to ban state investment in bitcoin.

HB7082 prohibits the state from accepting, holding, or investing in any virtual currencies.

It also imposes several new requirements on money transmitters.

— Bitcoin Laws (@Bitcoin_Laws) June 10, 2025

This bill don’t just stop at stopping investments. Nope, it also piles on stricter rules for those who move money around—demanding a 1:1 reserve, clear risk warnings, and safeguards for the old folks and big transactions. All in all, it’s a big ol’ wall to keep crypto out of Connecticut’s backyard.

Now, this seems mighty peculiar since the federal government under the Trump administration was throwing a welcome mat for Bitcoin, even setting up a “Strategic Bitcoin Reserve” and chatting it up with crypto folks. Talk about indecision! Meanwhile, other states are greener on the crypto side—New York’s tinkering with using Bitcoin and Ethereum for taxes, and New Hampshire’s got a Bitcoin Reserve big enough to turn heads.

Debate: Is Connecticut Just Foolhardy or Playing It Smart?

Many of the bigwigs in the industry aren’t shy about their disappointment. Matt Hougan of Bitwise snarked that banning Bitcoin was about as sensible as banning the wind—probably just caused by lawmakers throwing a fit or chasing headline grabbers.

“The hedge fund managers got so upset they couldn’t beat Bitcoin…” Hougan said with a chuckle.

But not everyone’s barking up the same tree. Kevin, CEO of Hummingbird, hints that maybe Connecticut’s just trying to diversify—sending their folks to work in New York City, where they can cash in on those very same Bitcoin coins that the state’s afraid to touch. Seems like a clever dodge, if you ask me.

“This is a diversification play for all the people that live in Connecticut and work in NYC. They want their finance funds to be able to buy the BTC that the state is forced to sell. Why have your state government own it when your NYC hedge fund can make money off of it? This is actually bullish!” Kevin said.

Over yonder, in Florida and Arizona, the crypto winds are blowing less fierce. Bills proposed to use up to 10% of public funds for Bitcoin got yanked, and Arizona’s governor vetoed two bills that tried to dip into digital gold—effectively shutting the door on crypto’s dinner plate in those parts.

All these goings-on show just how divided the nation is on whether Bitcoin’s a blessing or a curse. Big government, little government, everyone’s got their own opinion—much like a town full of arguing old timers.

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2025-06-11 12:35