Connecticut's Ban Throws Water on 2025 Trend of States Setting Up Crypto Investments

Going against the recent trend of state governments in the U.S. pursuing cryptocurrency investments, the Connecticut General Assembly has thrown down a ban against that New England state following suit, even as others pursue digital assets reserves in their fiscal strategies.

According to unanimous decisions in both its House and Senate, Connecticut passed a bill this week that blocks any part of the state's government from an ability to "purchase, hold, invest in or establish a reserve of virtual currency," and it also prohibits accepting crypto payments. This runs counter to efforts in states such as New Hampshire and Texas, which are moving toward establishing reserves that echo the intent of President Donald Trump's administration at the federal level.

The lawmakers in Connecticut, which ranks in the middle of the pack among state economies, also tightened rules for crypto firms working under the state's money-transmitter license.

After Trump issued an order to his administration in March to establish a reserve of bitcoin

, a long list of states jumped toward similar actions, though many of them were stymied by opposition or expiring legislative windows. New Hampshire was the first to cross the finish line. Texas has a similar bill awaiting a signature from Governor Greg Abbott, and Arizona also approved a more modest approach to setting aside unclaimed digital assets in a reserve.

"As legislative sessions wrap up across the country, we’re proud of the incredible momentum behind pro-Bitcoin and digital asset legislation," said Dennis Porter, the founder of the Satoshi Action Fund that's been advocating for state lawmakers to establish reserves. "Unfortunately, Connecticut has chosen to reject this opportunity—for now. But we remain optimistic. As more states embrace Bitcoin and see the benefits firsthand, we’re confident Connecticut will follow suit."

Porter said North Carolina and Ohio are both still a possibility for reserves this year.

The federal government hasn't yet moved assets into a reserve. The relevant agencies, led by the Department of the Treasury, have been seeking to account for all of the digital assets held in various corners of the public sector. Once complete, Trump had directed all existing crypto be set aside as a long-term investment but that no taxpayer money be spent to acquire anything more than the government has seized in civil and criminal matters. Bo Hines, one of Trump's top crypto advisers, said at Consensus 2025 in Toronto that there are a lot of ideas on the table for acquiring more bitcoin in budget-neutral ways.

In other state crypto legislative matters, California's lawmakers have been working on legislation that could allow digital assets payments in a state pilot program. The bill passed unanimously in its House and was forwarded to the Senate last week.

Read More: New Hampshire Becomes First State to Approve Crypto Reserve Law