Substitute House Bill No. 6991 seeks to modernize the definitions and regulations within Connecticut's Money Transmission Act to better reflect current financial technologies and practices. The bill repeals Section 36a-596 and introduces new definitions, including "digital wallet," which pertains to electronic functionalities for storing and processing payment credentials. It expands the definition of "money transmission" to include transactions via digital wallets and mobile applications. Additionally, the bill updates customer classification criteria based on transaction history at virtual currency kiosks and revises definitions for terms like "passive investor" and "payment instrument" to enhance clarity regarding the roles of involved parties.

The legislation also implements new advertising restrictions for licensed money transmitters, specifically prohibiting claims that deposited funds are eligible for Federal Deposit Insurance Corporation (FDIC) protections. It removes outdated definitions, such as "electronic record" and "travelers check," and emphasizes the need for transparency in advertising by requiring licensed persons to display their unique identifiers prominently. The bill is set to take effect on October 1, 2025, and is not anticipated to have any fiscal impact on the state or municipalities.

Statutes affected:
Raised Bill:
BA Joint Favorable:
File No. 194: