Connecticut governor Ned Lamont signed legislation this week banning state entities from accepting or receiving digital currencies.
House Bill 7082 was introduced in February and subsequently went through various amendments before being passed by state legislators. The Bill outlines that neither the state or any political subdivisions can accept or require payment in the form of virtual currency, which it describes as “any type of digital unit that is used as a medium of exchange or a form of digitally stored value or that is incorporated into payment system technology.”
A fiscal note attached to the Bill file, said, while the legislation makes several virtual currency-related changes to the state’s money transmission license, it isn’t anticipated to result in a fiscal impact to the state because “the Department of Banking can implement these changes with existing staff.”
The legislation is set to take effect Oct. 1.
According to a report by S&P Global, cryptocurrencies make up a slim portion of U.S. state reserve and pension holdings; however, many states are in various stages of implementing policy changes that would allow use of cryptocurrencies by their institutional entities. In particular, stablecoins, which are typically tied to a stable currency or asset such as gold, have seen increased interest globally.
S&P’s report found 16 states have begun discussions on whether to hold crypto in reserves, while nine are considering allowing state pension plans to include crypto in their allocation mix. Seven statewide pension plans allow crypto in their trusts, with four, including California, Florida, Wisconsin (as of Dec. 2024), and Michigan, currently hold crypto assets.
In May, Arizona enacted House Bill 2749, a law that allows the state to secure unclaimed digital assets and establish a bitcoin reserve fund. According to a press release, the move updates Arizona’s unclaimed property laws to account for the growing presence of digital assets and establishes a reserve fund for future appropriations with legislative approvals.
“The law establishes a clear process for identifying and handling unclaimed virtual property, protects the value of digital assets held by the state, and creates a reserve fund that may be used for future appropriations with legislative approval,” said the release.
“Digital assets aren’t the future — they’re the present,” said Arizona House Commerce Committee Chairman Jeff Weninger, in the release. “This law ensures Arizona doesn’t leave value sitting on the table and puts us in a position to lead the country in how we secure, manage, and ultimately benefit from abandoned digital currency. We’ve built a structure that protects property rights, respects ownership, and gives the state tools to account for a new category of value in the economy. It’s exactly the kind of policy we should be leading on— modern, precise, and built with an understanding of where technology and finance are heading.”
