Connecticut Legislature yesterday approved a law prohibiting the state government from investing, accepting and maintaining crypto-active investments, accepting and maintaining Bitcoin (BTC). Additionally, the law also imposes changes in industry regulations behind these assets.
The project under the HB7082 code, Unanimously approved on both cameras in the state legislatureand hopefully it’s signed. Its entry into force is scheduled for October next year.
This initiative has an official title Cryptocurrency and state investment regulation laws (Cryptocurrency Regulation and State Investment Law).
In addition to the ban on Bitcoin Reserve, an important aspect of the text is a new classification of fund transfer service providers operating in cryptocurrencies, including those who manage automatic Bitcoin ATMs and “cryptocurrency kiosks.”
These operators need to register customers and distinguish between new users and repeat usersbased on the number of transactions made and the time since registration.
The initiative also establishes conditions in which a person or entity can be considered as a person who “controls” a company dedicated to the transfer of cryptographically related funds, and criteria within which it can be considered as a “passive investor.” This approach aims to clearly identify who uses decision-making power within companies that manage third-party funds through digital currency.
Within the first terms, it is worth having at least 25% of the actions that have the right to vote, and having the ability to designate most managers and have a critical impact on the management and policies of the company. On the other hand, to be recognized as a “passive investor”, a person must demonstrate that he is not involved in the management of the entity or decision-making.
Connecticut has adopted a restrictive position towards cryptocurrency, but other parts of the US are moving forward with an open approach And it’s innovative. Among the latest cases is Texas, which last month Congress approved a bill to create a Bitcoin Reserve.
Additionally, as reported by Cryptonoticias, New Hampshire has approved a law that allows state accounting to allocate a percentage of public funds to strategic Bitcoin reserves. The measure aims to protect the state’s finances from inflation and dollar depreciation.
In parallel, Arizona and Oregon are promoting regulations to advance the integration of cryptocurrency within the region.
Arizona gave a green light to create a special fund for unclaimed digital assets, while Oregon updated its commercial code to recognize cryptographic effects as a valid guarantee for the contract, facilitating its use in commercial transactions and credit operations.
According to the Bitcoin Laws Analysis company, 48 projects related to Bitcoin booking have been announced in 26 states. Of these, 31 are still legislative in 16 jurisdictions.
