The U.S. state of Connecticut has passed a controversial new bill that explicitly prohibits the possession or investment in digital Bitcoin, marking a drastic shift in the state's approach to digital assets. The new law, known as HB7082, is titled "Virtual Currency Regulation and State Investments Act," and is considered one of the most stringent pieces of cryptocurrency legislation in the United States.
Bitcoin ban criminalizes possession and investment within the state Under the new law, Bitcoin and other virtual currencies are illegal in the state of Connecticut, both in terms of possession and use for investment. This means that residents of the state may face legal penalties if they are found possessing digital assets such as Bitcoin, whether for trading, saving, or long-term investment purposes.
Disclosure of cryptocurrency risks has become mandatory The law requires companies operating in the cryptocurrency field and offering money transfer services to clearly disclose all risks associated with the use of Bitcoin and other digital currencies. This provision aims to protect consumers from sharp market fluctuations and unexpected losses, especially given the volatile nature of the cryptocurrency market.
Parental consent required for minors using digital currencies Among the notable provisions in HB7082 is the requirement for parental consent for users under 18 years old when using any app or platform dealing with Bitcoin or other crypto assets. This measure is seen as a step to enhance the digital security of sensitive age groups and to mitigate early financial risks.
The law aims to protect public funds in Connecticut Through this legislation, the state sought to ensure that government funds are not exposed to the risks of digital assets, including Bitcoin, known for its sharp volatility. The law stipulates the need to regulate any transactions involving virtual currencies to protect public money and impose oversight on the use of cryptocurrencies in official or governmental processes.
The law also includes advanced anti-money laundering policies, requiring all companies associated with Bitcoin or any other cryptocurrency to fully comply with governmental controls, with the aim of preventing illicit financial activities. State legislators emphasize that these measures will make the financial system safer and more transparent.
Other U.S. states take a contrary path and accumulate Bitcoin reserves While Connecticut takes the path of prohibition, states like New Hampshire, Texas, and Arizona are moving towards enhancing their Bitcoin reserves as part of long-term financial strategies, backed by supportive visions from President Donald Trump. As states differ in their approaches, the fate of Bitcoin in Connecticut remains suspended under the weight of legislation that is considered among the most stringent in the United States.
