Meanwhile, the bill not only shuts the door on future crypto reserves, but it also outlines strict rules for crypto-related businesses operating within the state.
Under the new regulations, companies involved in virtual currency transmission must clearly disclose all material risks associated with their services. This includes stating that:
“Virtual currency transactions are irreversible and are used by persons seeking to defraud customers, including, but not limited to, a person impersonating a customer’s loved one, threatening jail time,
stating that a customer’s identity has been stolen, insisting that a customer withdraw money from the customer’s bank account and purchase cryptocurrency or alleging a customer’s personal computer
has been hacked.”
According to lawmakers, this move is meant to protect consumers from the volatility and complexity often associated with digital assets.
While Connecticut enacts restrictions, other states are heading in the opposite direction.
The contrasting approaches between these states highlight a growing divide in how they view the role of digital assets in public finance. Some see Bitcoin as a hedge and diversification tool, while others view it as too unstable for taxpayer-backed investments.
Nevertheless, the push for state-managed crypto reserves is gaining momentum across the US. According to Bitcoin Laws data, 48 bills related to Bitcoin reserves are currently under consideration in various states, with eight states already approving the initiative.
