Brief
- Connecticut unanimously adopted the most restrictive cryptographic law in the United States, with the exception of all governments of states and premises of purchase, detention or investment in virtual currencies.
- The legislation requires “daring” fraud warnings for cryptographic companies and requires the disclosure of “all significant risks” while revising the laws of transmission of money to the scale of the State.
- The prohibition of Connecticut contrasts strongly with the national trend, because 31 Bitcoin reserve invoices remain active in 16 states.
While dozens of states rush to establish Bitcoin reserves, Connecticut has simply closed the door.
The General Assembly of the State unanimously adopted the bill of Chamber 7082 Tuesday – now public law n ° 25-66 – saying of the country’s most radical ban on government cryptography investments.
Complete legislation explicitly prohibits government entities from “establishing a virtual currency reserve” and preventing them from accepting the crypto as payment of any amount due to the state or its political subdivisions.
The new law represents one of the most restrictive approaches in the crypto at the level of the state, effectively blocking all future initiatives of digital assets sponsored by the State.
In addition to investment intervention, legislation introduces strict consumer protection measures that require cryptographic companies engaged in money transmission to disclose “all the material risks associated with virtual currency”.
The bill obliges that crypto service providers display “daring” warnings saying that “losses due to fraudulent or accidental transactions may not be recoverable and transactions in virtual currency are irreversible”.
Additional protections include verification requirements for users under the age of 18 and complete disclosure requirements for virtual currency transactions.
In addition to prohibiting crypto in public accounts, the law revises monetary transmission laws, introduces new definitions around digital portfolios, control people and kiosks, and obliges state -related companies to adopt rigorous frameworks.
American state bitcoin reserves
The restrictive position of Connecticut places it in contradiction with an increasing number of states embracing crypto as a strategic asset.
The legislative split indicates the increase in disagreement on the role of cryptography in the management of the state treasury, supporters citing the portfolio of the portfolio while opponents raise concerns concerning volatility and trust.
About 31 bills linked to the Bitcoin reserves of the State are still underway, 16 states from the front while 8 have rejected the proposals, in accordance with the data of the reserve reserve laws of the reserve invoices.
Despite the refusals, some legislators have promised to review the proposals in the future.
The New Hampshire became the first state to successfully establish a Bitcoin strategic reserve last month, followed by Arizona with a more limited approach focused on tax funds without taxation.
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