Connecticut has enacted legislation prohibiting state and local government entities from holding cryptocurrency like Bitcoin and Ethereum. This new rule, represented by Public Act No. 25-66, signals a cautious approach towards cryptocurrencies while ensuring consumer protection and financial stability. The bill eliminates any investment in digital assets, while establishing specific rules for minors regarding participation. The ban’s impact on institutional demand is significant, as it will remove state involvement from the market. However, private sector and retail investors are not directly affected, although new compliance standards have been introduced to businesses. While Connecticut’s move contrasts states like New Hampshire, which encourage Bitcoin treasury management, the bill also introduces challenges for fintech companies navigating increased compliance costs, potentially leading to reduced interest in Connecticut.