Connecticut has enacted a strict law that prohibits all state and local governments from purchasing, holding, or investing in cryptocurrencies. This legislation effectively blocks future state-sponsored digital asset initiatives and requires crypto businesses to disclose all material risks associated with virtual currencies. The law mandates that businesses provide prominent warnings regarding the irrecoverable nature of cryptocurrency transactions and includes verification requirements for users under 18. This ban contrasts sharply with a national trend where 31 other states are actively considering Bitcoin reserve proposals. The legislation represents one of the most restrictive measures taken by a state regarding cryptocurrencies, reflecting a growing division in the U.S. on the role of crypto in state treasury management. While some states, like New Hampshire and Arizona, are embracing Bitcoin as a strategic asset, Connecticut's new law emphasizes consumer protection while preventing governmental engagement in the crypto market.

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