Connecticut Bans Crypto Investments as Other States Embrace Bitcoin Reserves

In a move that bucks the growing trend of state-level crypto adoption, Connecticut has passed legislation banning government involvement with digital assets. The bill, unanimously approved by both the House and Senate, prohibits any state agency from purchasing, holding, investing in, or creating a reserve of virtual currency. It also disallows accepting crypto payments.

This decision comes as several U.S. states ramp up efforts to integrate Bitcoin and other digital assets into their fiscal strategies. States like New Hampshire, Texas, and Arizona are exploring or enacting policies to hold digital reserves, aligning with former President Donald Trump’s directive for the federal government to establish a Bitcoin reserve using seized assets—without deploying taxpayer funds.

Despite this momentum, Connecticut has opted for a cautious stance, also tightening its regulatory framework for crypto firms operating under the state’s money-transmitter license. The move contrasts with developments in New Hampshire, which has already passed pro-Bitcoin legislation, and Texas, where a similar bill awaits Governor Greg Abbott’s signature. Arizona recently approved a more conservative plan involving unclaimed crypto assets.

Dennis Porter, CEO of the pro-Bitcoin advocacy group Satoshi Action Fund, expressed disappointment but remained hopeful. “Connecticut has chosen to reject this opportunity—for now. But as other states benefit from Bitcoin reserves, we expect Connecticut to reconsider,” he said, noting that North Carolina and Ohio may still pass crypto reserve laws this year.

Meanwhile, California is exploring a pilot program for digital payments, with its legislation moving smoothly through the state assembly.

With the federal government still assessing digital assets across agencies, the national outlook remains fluid. However, states continue to shape the future of crypto integration—either by embracing or restricting digital asset strategies.