Connecticut Governor signed into law a landmark bill prohibiting Bitcoin reserves across state-regulated entities. The legislation explicitly bans holding Bitcoin as a reserve asset due to heightened concerns about volatility and unpredictability in cryptocurrency markets.
State officials attributed the sweeping prohibition to persistent uncertainties surrounding digital asset valuations and systemic risks. The governor’s office emphasized safeguarding institutional investors and maintaining financial stability as core motivations behind the measure.
This development directly impacts institutional investment strategies operating within Connecticut, forcing entities to eliminate Bitcoin exposure from reserve portfolios. Financial analysts suggest the ban may influence regulatory approaches toward cryptocurrency reserves in other U.S. jurisdictions.