In a move that counters the recent wave of state governments in the US exploring cryptocurrency investments, the Connecticut General Assembly has enacted a ban that prevents the state government from engaging in digital asset investments or establishing a reserve. This decision was made unanimously by both the House and Senate, and it also prohibits the acceptance of cryptocurrency payments. The new law specifically forbids any part of the state government from purchasing, holding, or investing in virtual currency.
This development runs counter to efforts by states such as New Hampshire and Texas, which are working towards creating digital asset reserves as part of their fiscal strategies, a move that echoes the federal government's intentions under the Trump administration. The Connecticut lawmakers, whose state has a mid-ranked economy, have also tightened regulations for cryptocurrency firms operating under the state's money-transmitter license.
Following President Trump's order in March to establish a bitcoin reserve, several states moved to take similar actions, although many faced opposition or missed legislative deadlines. New Hampshire was the first to successfully establish a reserve, while Texas has a similar bill awaiting the governor's signature, and Arizona has approved a more modest approach to setting aside unclaimed digital assets. Dennis Porter, founder of the Satoshi Action Fund, which advocates for state lawmakers to establish reserves, expressed pride in the momentum behind pro-Bitcoin and digital asset legislation but noted that Connecticut's decision is a setback. Porter remains optimistic, believing that as more states experience the benefits of Bitcoin, Connecticut will eventually follow suit.
North Carolina and Ohio are still potential candidates for establishing reserves this year. At the federal level, the government has not yet transferred assets into a reserve, with relevant agencies led by the Department of the Treasury working to account for all digital assets held in the public sector. Once this process is complete, the plan is to set aside existing crypto as a long-term investment without using taxpayer money to acquire more, beyond what has been seized in civil and criminal matters.
Bo Hines, a top crypto adviser to Trump, mentioned at Consensus 2025 that there are several ideas being considered for acquiring more bitcoin in budget-neutral ways. In other state crypto legislative news, California is working on a bill that could allow digital asset payments in a state pilot program, which passed unanimously in the House and was sent to the Senate.