Connecticut has taken a agency stance in opposition to authorities involvement in digital belongings like Bitcoin.
On June 30, Governor Ned Lamont signed a brand new invoice into legislation that bans state businesses from investing in crypto, together with Bitcoin.
The laws, often called Home Invoice 7082, additionally prevents state entities from accepting these belongings as cost for any monetary obligation owed to the state.
In the meantime, the invoice not solely shuts the door on future crypto reserves, however it additionally outlines strict guidelines for crypto-related companies working inside the state.
Underneath the brand new laws, corporations concerned in digital foreign money transmission should clearly disclose all materials dangers related to their providers. This consists of stating that:
“Digital foreign money transactions are irreversible and are utilized by individuals searching for to defraud clients, together with, however not restricted to, an individual impersonating a buyer’s liked one, threatening jail time,
stating {that a} buyer’s identification has been stolen, insisting {that a} buyer withdraw cash from the client’s checking account and buy cryptocurrency or alleging a buyer’s private laptop
has been hacked.”
In keeping with lawmakers, this transfer is supposed to guard customers from the volatility and complexity usually related to digital belongings.
This represents one of the crucial sweeping bans on digital asset adoption by any US state authorities to this point. Notably, the legislation had handed unanimously via the Connecticut Common Meeting earlier in June.
Different US states embrace Bitcoin reserves
Whereas Connecticut enacts restrictions, different states are heading in the other way.
Texas governor just lately signed Senate Invoice 21 into legislation, permitting the state to create and fund a Bitcoin reserve utilizing public cash.
This places Texas alongside Arizona and New Hampshire, which have additionally launched related measures so as to add digital belongings to their state treasuries.
The contrasting approaches between these states spotlight a rising divide in how they view the function of digital belongings in public finance. Some see Bitcoin as a hedge and diversification device, whereas others view it as too unstable for taxpayer-backed investments.
Nonetheless, the push for state-managed crypto reserves is gaining momentum throughout the US. In keeping with Bitcoin Legal guidelines knowledge, 48 payments associated to Bitcoin reserves are presently into account in numerous states, with eight states already approving the initiative.
