Connecticut has officially passed Public Act No. 25-66, a law that prohibits state agencies and public pension funds from investing in cryptocurrencies or related financial products. The bill was signed into law this week after receiving bipartisan support in the state legislature.
Under the new law, state treasurers and investment managers are barred from allocating public funds to digital assets like Bitcoin, Ethereum, or crypto-linked ETFs, citing volatility and lack of long-term risk modeling frameworks.
“No public funds shall be invested in digital assets or cryptocurrency instruments,” the law states, defining crypto as “an electronic representation of value relying on blockchain technology.”
A Growing Regulatory Divide Across States
The move places Connecticut in sharp contrast with several pro-crypto states. Just last month, New Hampshire passed a bill to create a strategic Bitcoin reserve, aimed at future-proofing the state’s financial position. Arizona quickly followed, signaling a growing policy divide at the state level.
While some regions see digital assets as a hedge and innovation play, others—like Connecticut—are taking a far more cautious, risk-averse approach.
