Connecticut Bans State Crypto Transactions with New Law

Governor Ned Lamont has enacted new legislation prohibiting cryptocurrency activities by state governments. This bill, referred to as the crypto crime bill, was signed in May 2025 with bipartisan support.

The Connecticut General Assembly unanimously passed the bill to prevent state participation in digital asset markets. HB7082 aims to deter crimes like money laundering and fraud. Governor Lamont shared his perspective on the bill: “This legislation is about transparency, oversight, and deterring money laundering, fraud, and crypto theft.”

The law restricts Connecticut’s government from interacting with Bitcoin, Ethereum, and other digital currencies. Economic impacts could extend to public institutions unable to leverage blockchain technologies.

By entirely barring such investments, the legislation mirrors efforts by other states. Officials emphasize enhancing transparency and oversight over crypto activities.

Connecticut’s law follows similar moves in Montana and Wyoming, indicating a trend against public sector crypto investments. These actions reflect a precautionary approach to digital finance.

The prohibition may limit future opportunities for state-level crypto integration. Historical data shows increased legislative focus on regulating digital currency usage among governmental bodies, following examples set by other states.