Substitute House Bill No. 7082 seeks to amend the regulations governing virtual currency money transmission licensees in Connecticut, introducing new definitions and clarifications for terms such as "existing customer," "new customer," and "passive investor." The bill repeals Section 36a-596 and replaces it with updated provisions that emphasize the responsibilities of licensees and their authorized delegates in virtual currency transactions. Key insertions include the definition of "virtual currency control services vendor" and the clarification of "stored value." The bill also mandates that licensees maintain permissible investments equal to their outstanding money transmissions and hold virtual currency of the same type and amount owed to customers, thereby protecting these assets in bankruptcy situations.

Additionally, the bill prohibits state payments and investments in virtual currency, reflecting a cautious approach to its integration into state financial systems. It requires licensees to provide detailed disclosures to consumers before and after transactions, including information about fees, transaction irrevocability, and customer rights. The bill emphasizes consumer protection by designating virtual currency held by licensees as property interests of claimants, safeguarding these assets from creditors. The effective date for these changes is set for October 1, 2025, allowing stakeholders time to adapt to the new regulatory framework.

Statutes affected:
Raised Bill:
BA Joint Favorable:
File No. 318: