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Connecticut Closes Door on Bitcoin, Mandates Strict Disclosure for Crypto Firms
In a move to strengthen consumer protection and curb financial scams, the state of Connecticut has taken a bold stance against government involvement in digital assets like Bitcoin. On June 30, Governor Ned Lamont signed a new bill into law that prohibits state agencies from investing in or accepting cryptocurrencies as payment for any fiscal obligation owed to the state.
The newly enacted House Bill 7082 not only marks a significant shift in Connecticut’s regulatory approach but also sets a benchmark for transparency among crypto-related businesses operating within its borders. The legislation compels virtual currency transmission companies to clearly disclose all material risks associated with their services, ensuring investors are adequately informed before making any transactions.
In a remarkable twist, this move starkly contrasts with other US states that have taken steps to incorporate digital assets into their public finance frameworks. Texas Governor recently signed Senate Bill 21 into law, allowing the state to establish and fund a Bitcoin reserve using taxpayer-backed funds. This move aligns with initiatives already underway in Arizona and New Hampshire, which also aim to integrate cryptocurrencies into their state treasuries.
The differing regulatory approaches between these states underscore a growing divide on how they perceive the role of digital assets in public finance. While some see Bitcoin as a hedge and diversification tool for investment portfolios, others remain skeptical about its suitability for taxpayer-backed investments due to its historically high volatility.
In any case, the push for state-managed crypto reserves is gaining momentum across the US, with 48 bills related to Bitcoin reserves currently under consideration in various states.
Source: cryptoslate.com
