Connecticut 2025 Regular Session

Connecticut House Bill HB07082 Compare Versions

Version 1 (Old)

Version 2 (New)

Old	New		Differences
1	1
2	2
3		-	LCO 1 of 14
	3	+	LCO No. 5224 1 of 15
4	4
5		-	General Assembly ~~Substitute~~ Bill No. 7082
	5	+	General Assembly Raised Bill No. 7082
6	6		January Session, 2025
	7	+	LCO No. 5224
	8	+
	9	+
	10	+	Referred to Committee on BANKING
	11	+
	12	+
	13	+	Introduced by:
	14	+	(BA)
	15	+
7	16
8	17
9	18
10	19		AN ACT CONCERNING CERTAIN REQUIREMENTS APPLICABLE TO
11	20		VIRTUAL CURRENCY MONEY TRANSMISSION LICENSEES AND
12	21		PROPERTY INTERESTS IN VIRTUAL CURRENCY AND PROHIBITING
13	22		STATE PAYMENTS AND INVESTMENTS IN VIRTUAL CURRENCY.
14	23		Be it enacted by the Senate and House of Representatives in General
15	24		Assembly convened:
16	25
17	26		Section 1. Section 36a-596 of the general statutes is repealed and the 1
18	27		following is substituted in lieu thereof (Effective October 1, 2025): 2
19	28		As used in sections 36a-595 to 36a-614, inclusive, and section 2 of this 3
20	29		act, unless the context otherwise requires: 4
21	30		(1) "Advertise" or "advertising" has the same meaning as provided in 5
22	31		section 36a-485. 6
23	32		(2) "Authorized delegate" means a person designated by a person 7
24	33		licensed pursuant to sections 36a-595 to 36a-612, inclusive, to provide 8
25	34		money transmission services on behalf of such licensed person. 9
26	35		(3) "Control" means (A) the power to vote, directly or indirectly, at 10
27	36		least twenty-five per cent of the outstanding voting shares or voting 11
28	37		interests of a licensee or person in control of a licensee, (B) the power to 12
	38	+	Raised Bill No. 7082
	39	+
	40	+
	41	+
	42	+	LCO No. 5224 2 of 15
	43	+
29	44		elect or appoint a majority of key individuals or executive officers, 13
30	45		managers, directors, trustees or other persons exercising managerial 14
31	46		authority of a person in control of a licensee, or (C) the power to exercise, 15
32		-	directly or indirectly, a controlling influence over the management or 16 Substitute Bill No. 7082
33		-
34		-
35		-	LCO 2 of 14
36		-
	47	+	directly or indirectly, a controlling influence over the management or 16
37	48		policies of a licensee or person in control of a licensee. For purposes of 17
38	49		this subdivision, (i) a person is presumed to exercise a controlling 18
39	50		influence when the person holds the power to vote, directly or 19
40	51		indirectly, at least ten per cent of the outstanding voting shares or voting 20
41	52		interests of a licensee or person in control of a licensee, (ii) a person 21
42	53		presumed to exercise a controlling influence can rebut such 22
43	54		presumption if the person is a passive investor, and (iii) to determine 23
44	55		the percentage of control, a person's interest shall be aggregated with 24
45	56		the interest of any other immediate family member, including the 25
46	57		person's spouse, parent, child, sibling, mother-in-law, father-in-law, 26
47	58		son-in-law, daughter-in-law, brother-in-law, sister-in-law and any other 27
48	59		person who shares the person's home. 28
49	60		(4) "Control person" means any individual in control of a licensee or 29
50	61		applicant, any individual who seeks to acquire control of a licensee or a 30
51	62		key individual. 31
52	63		(5) "Electronic payment instrument" (A) means a card or other 32
53	64		tangible object (i) for the transmission of money or monetary value or 33
54	65		payment of money, (ii) which contains a microprocessor chip, magnetic 34
55	66		stripe or other means for the storage of information, (iii) that is 35
56	67		prefunded, and (iv) for which the value is decremented upon each use, 36
57	68		and (B) does not include a card or other tangible object that is 37
58	69		redeemable by the issuer in the issuer's goods or services. 38
59	70		(6) "Existing customer" means a consumer who (A) is engaging in a 39
60	71		transaction at a virtual currency kiosk in the state, (B) has performed not 40
61	72		fewer than three virtual currency transactions with the owner or 41
62	73		operator of such virtual currency kiosk, and (C) has been registered as a 42
63	74		customer of such owner or operator for more than seventy-two hours. 43
	75	+	Raised Bill No. 7082
	76	+
	77	+
	78	+
	79	+	LCO No. 5224 3 of 15
	80	+
64	81		(7) "Holder" means a person, other than a purchaser, who is either in 44
65	82		possession of a payment instrument and is the named payee thereon or 45
66	83		in possession of a payment instrument issued or endorsed to such 46
67	84		person or bearer or in blank. "Holder" does not include any person who 47
68		-	is in possession of a lost, stolen or forged payment instrument. 48 Substitute Bill No. 7082
69		-
70		-
71		-	LCO 3 of 14
72		-
	85	+	is in possession of a lost, stolen or forged payment instrument. 48
73	86		(8) "Key individual" means any individual ultimately responsible for 49
74	87		establishing or directing policies and procedures of the licensee, 50
75	88		including, but not limited to, an executive officer, manager, director or 51
76	89		trustee. 52
77	90		(9) "Licensee" means any person licensed or required to be licensed 53
78	91		pursuant to sections 36a-595 to 36a-612, inclusive. 54
79	92		(10) "Main office" has the same meaning as provided in section 36a-55
80	93		485. 56
81	94		(11) "Monetary value" means a medium of exchange, whether or not 57
82	95		redeemable in money. 58
83	96		(12) "Money transmission" means engaging in the business of issuing 59
84	97		or selling payment instruments or stored value, receiving money or 60
85	98		monetary value for current or future transmission or the business of 61
86	99		transmitting money or monetary value within the United States or to 62
87	100		locations outside the United States by any and all means including, but 63
88	101		not limited to, payment instrument, wire, facsimile, electronic transfer 64
89	102		or virtual currency kiosk. 65
90	103		(13) "New customer" means a consumer who (A) is engaging in a 66
91	104		transaction at a virtual currency kiosk in the state, (B) has performed 67
92	105		fewer than three virtual currency transactions with the owner or 68
93	106		operator of such virtual currency kiosk, and (C) has been registered as a 69
94	107		customer of such owner or operator for less than seventy-two hours. 70
95	108		(14) "Outstanding" means (A) in the case of a payment instrument or 71
96	109		stored value, that (i) such instrument or value is sold or issued in the 72
	110	+	Raised Bill No. 7082
	111	+
	112	+
	113	+
	114	+	LCO No. 5224 4 of 15
	115	+
97	116		United States, (ii) a report of such instrument or value has been received 73
98	117		by a licensee from its authorized delegates, and (iii) such instrument or 74
99	118		value has not yet been paid by the issuer, and (B) for all other money 75
100	119		transmissions, the value reported to the licensee for which the licensee 76
101	120		or any authorized delegate has received money or its equivalent value 77
102	121		from the customer for transmission, but has not yet completed the 78
103		-	money transmission by delivering the money or monetary value to the 79 Substitute Bill No. 7082
104		-
105		-
106		-	LCO 4 of 14
107		-
	122	+	money transmission by delivering the money or monetary value to the 79
108	123		person designated by the customer. 80
109	124		(15) "Passive investor" means a person that (A) does not have the 81
110	125		power to elect a majority of key individuals or executive officers, 82
111	126		managers, directors, trustees or other persons exercising managerial 83
112	127		authority of a person in control of a licensee, (B) is not employed by and 84
113	128		does not have any managerial duties of the licensee or person in control 85
114	129		of a licensee, (C) does not have the power to exercise, directly or 86
115	130		indirectly, a controlling influence over the management or policies of a 87
116	131		licensee or person in control of a licensee, and (D) attests to 88
117	132		subparagraphs (A), (B) and (C) of this subdivision in the form and 89
118	133		manner prescribed by the commissioner. 90
119	134		(16) "Payment instrument" means a check, draft, money order, 91
120	135		travelers check or electronic payment instrument that evidences either 92
121	136		an obligation for the transmission of money or monetary value or 93
122	137		payment of money, or the purchase or the deposit of funds for the 94
123	138		purchase of such check, draft, money order, travelers check or electronic 95
124	139		payment instrument. 96
125	140		(17) "Permissible investment" means (A) (i) cash in United States 97
126	141		currency, including, but not limited to, demand deposits, savings 98
127	142		deposits and funds in demand deposit and savings deposit accounts 99
128	143		held for the benefit of a licensee's customers in an insured depository 100
129	144		institution, and (ii) cash equivalents, including, but not limited to, (I) 101
130	145		automated clearing house items in transit to a licensee or payee, (II) 102
131	146		international wires in transit to a payee, (III) cash in transit via armored 103
132	147		car, (IV) cash in smart safes, (V) cash in locations owned by licensees, 104
	148	+	Raised Bill No. 7082
	149	+
	150	+
	151	+
	152	+	LCO No. 5224 5 of 15
	153	+
133	154		(VI) transmission receivables that are funded by debit cards or credit 105
134	155		cards and owed by any bank, and (VII) money market mutual funds 106
135	156		rated "AAA" or the equivalent by S & P Global, Incorporated, in the "S 107
136	157		& P Global Ratings" or by any other rating service recognized by the 108
137	158		commissioner, (B) time deposits, as defined in section 36a-2, or other 109
138	159		debt instruments of a bank, (C) bills of exchange or bankers acceptances 110
139	160		which are eligible for purchase by member banks of the Federal Reserve 111
140		-	System, (D) commercial paper of prime quality, (E) interest-bearing 112 Substitute Bill No. 7082
141		-
142		-
143		-	LCO 5 of 14
144		-
	161	+	System, (D) commercial paper of prime quality, (E) interest-bearing 112
145	162		bills, notes, bonds, debentures or other obligations issued or guaranteed 113
146	163		by (i) the United States or any of its agencies or instrumentalities, or (ii) 114
147	164		any state, or any agency, instrumentality, political subdivision, school 115
148	165		district or legally constituted authority of any state if such investment is 116
149	166		of prime quality, (F) interest-bearing bills or notes, or bonds, debentures 117
150	167		or preferred stocks, traded on any national securities exchange or on a 118
151	168		national over-the-counter market, if such debt or equity investments are 119
152	169		of prime quality, (G) receivables due from authorized delegates 120
153	170		consisting of the proceeds of the sale of payment instruments which are 121
154	171		not past due or doubtful of collection, (H) gold, and (I) any other 122
155	172		investments approved by the commissioner. Notwithstanding the 123
156	173		provisions of this subdivision, if the commissioner at any time finds that 124
157	174		an investment of a licensee is unsatisfactory for investment purposes, 125
158	175		the investment shall not qualify as a permissible investment. 126
159	176		(18) "Prime quality" of an investment means that it is within the top 127
160	177		four rating categories in any rating service recognized by the 128
161	178		commissioner unless the commissioner determines for any licensee that 129
162	179		only those investments in the top three rating categories qualify as 130
163	180		prime quality. 131
164	181		(19) "Purchaser" means a person who buys or has bought a payment 132
165	182		instrument or who has given money or monetary value for current or 133
166	183		future transmission. 134
167	184		(20) "Receipt" means a paper record, electronic record or other written 135
168	185		confirmation of a money transmission transaction. 136
	186	+	Raised Bill No. 7082
	187	+
	188	+
	189	+
	190	+	LCO No. 5224 6 of 15
	191	+
169	192		(21) "Stored value" means monetary value that is evidenced by an 137
170	193		electronic record. For the purposes of this subdivision, "electronic 138
171	194		record" means information that is stored in an electronic medium and is 139
172	195		retrievable in perceivable form. 140
173	196		(22) "Travelers check" means a payment instrument for the payment 141
174	197		of money that contains a provision for a specimen signature of the 142
175	198		purchaser to be completed at the time of a purchase of the instrument 143
176		-	and a provision for a countersignature of the purchaser to be completed 144 Substitute Bill No. 7082
177		-
178		-
179		-	LCO 6 of 14
180		-
	199	+	and a provision for a countersignature of the purchaser to be completed 144
181	200		at the time of negotiation. 145
182	201		(23) "Unique identifier" has the same meaning as provided in section 146
183	202		36a-485. 147
184	203		(24) "Virtual currency" means any type of digital unit that is used as 148
185	204		a medium of exchange or a form of digitally stored value or that is 149
186	205		incorporated into payment system technology. Virtual currency shall be 150
187	206		construed to include digital units of exchange that (A) have a centralized 151
188	207		repository or administrator, (B) are decentralized and have no 152
189	208		centralized repository or administrator, or (C) may be created or 153
190	209		obtained by computing or manufacturing effort. Virtual currency shall 154
191	210		not be construed to include digital units that are used (i) solely within 155
192	211		online gaming platforms with no market or application outside such 156
193	212		gaming platforms, or (ii) exclusively as part of a consumer affinity or 157
194	213		rewards program, and can be applied solely as payment for purchases 158
195	214		with the issuer or other designated merchants, but cannot be converted 159
196	215		into or redeemed for fiat currency. 160
197	216		(25) "Virtual currency address" means an alphanumeric identifier 161
198	217		representing a destination for a virtual currency transfer that is 162
199	218		associated with a virtual currency wallet. 163
200		-	(26) "Virtual currency control services vendor" means a person ~~who~~ 164
201		-	controls virtual currency under an agreement with another person ~~who~~, 165
	219	+	(26) "Virtual currency control services vendor" means a person that 164
	220	+	controls virtual currency under an agreement with another person that, 165
202	221		on behalf of a third person, assumes control of virtual currency. 166
	222	+	Raised Bill No. 7082
	223	+
	224	+
	225	+
	226	+	LCO No. 5224 7 of 15
	227	+
203	228		[(26)] (27) "Virtual currency kiosk" means an electronic terminal 167
204	229		acting as a mechanical agent of the owner or operator to enable the 168
205	230		owner or operator to facilitate the exchange of virtual currency for fiat 169
206	231		currency or other virtual currency, including, but not limited to, by (A) 170
207	232		connecting directly to a separate virtual currency exchanger that 171
208	233		performs the actual virtual currency transmission, or (B) drawing upon 172
209	234		the virtual currency in the possession of the owner or operator of the 173
210	235		electronic terminal. 174
211		-	[(27)] (28) "Virtual currency wallet" means a software application or 175 Substitute Bill No. 7082
212		-
213		-
214		-	LCO 7 of 14
215		-
	236	+	[(27)] (28) "Virtual currency wallet" means a software application or 175
216	237		other mechanism providing a means for holding, storing and 176
217	238		transferring virtual currency. 177
218	239		Sec. 2. (NEW) (Effective October 1, 2025) (a) Prior to entering into a 178
219	240		virtual currency transaction for, on behalf of or with a person, and to the 179
220	241		extent applicable to the transaction, each licensee that engages in the 180
221	242		business of money transmission in this state by receiving, transmitting, 181
222	243		storing or maintaining custody or control of virtual currency shall 182
223	244		clearly and conspicuously disclose to such person in a retainable record: 183
224	245		(1) A schedule of any fee or charge; 184
225	246		(2) If any fee or charge is not set and disclosed in advance of the 185
226	247		transaction, the manner and timing by which such fee or charge will be 186
227	248		calculated; 187
228	249		(3) Any pricing differential on a purchase, sale or exchange of virtual 188
229	250		currency related to the transaction and in which the licensee or any 189
230	251		affiliate of such licensee is acting in a principal capacity; 190
231		-	(4) Whether the transaction is covered by insurance, or is otherwise 191
232		-	guaranteed against loss by an agency of the United States or the 192
233		-	Securities Investor Protection Corporation, and, if so, (A) the amount, 193
234		-	expressed in United States dollars, of such coverage or guarantee, and 194
235		-	(B) whether such insurance provides coverage against theft or loss, 195
236		-	including, but not limited to, cyber theft; 196
237		-	(5) That the transaction is irrevocable, or if there is any exception to 197
238		-	such irrevocability; 198
239		-	(6) A description of (A) the person's liability for an unauthorized, 199
240		-	mistaken or accidental transaction, (B) the person's responsibility to 200
241		-	provide notice to the licensee of such unauthorized, mistaken or 201
242		-	accidental transaction, (C) the basis for any recovery by the person from 202
243		-	the licensee, (D) the general rights of the person to resolve an error 203
244		-	related to the transaction, and (E) the method for the person to update 204
245		-	the person's contact information with the licensee; 205 Substitute Bill No. 7082
	252	+	(4) Whether the transaction is covered by (A) insurance, or is 191
	253	+	otherwise guaranteed against loss by an agency of the United States or 192
	254	+	the Securities Investor Protection Corporation, and, if so, the amount, 193
	255	+	expressed in United States dollars, of such coverage or guarantee, or (B) 194
	256	+	insurance against theft or loss, including, but not limited to, cyber theft; 195
	257	+	Raised Bill No. 7082
246	258
247	259
248		-	LCO 8 of 14
249	260
250		-	(7) That the date or time when the transaction is completed and the 206
251		-	person's account is debited may differ from the date or time when the 207
252		-	person initiates the transaction; 208
253		-	(8) Whether the person has a right to stop a preauthorized transaction 209
254		-	or revoke an authorization for a transaction and the procedure to initiate 210
255		-	such stop or revocation; 211
256		-	(9) The person's right to receive a receipt, trade ticket or other 212
257		-	evidence of the transaction; 213
258		-	(10) The person's right to receive notice not less than thirty days 214
259		-	before any change in the licensee's fee schedule, other terms or 215
260		-	conditions of the licensee's virtual currency business and any policy 216
261		-	applicable to the person's account; 217
262		-	(11) That virtual currency is not money; and 218
263		-	(12) Any additional disclosure the Banking Commissioner 219
264		-	determines to be reasonably necessary for the protection of the public. 220
265		-	(b) Each licensee that engages in the business of money transmission 221
266		-	in this state by receiving, transmitting, storing or maintaining custody 222
267		-	or control of virtual currency shall, upon the completion of any virtual 223
268		-	currency transaction with a person, provide to the person a receipt 224
269		-	containing the following information: 225
270		-	(1) The name and contact information of the licensee; 226
271		-	(2) A description of how the person may ask a question or file a 227
272		-	complaint; 228
273		-	(3) The type, date and precise time of the transaction; 229
274		-	(4) The value of the transaction, expressed in United States dollars; 230
275		-	and 231
276		-	(5) Any consideration the licensee charged for the transaction, 232
277		-	including, but not limited to (A) any charge, fee or commission, and (B) 233 Substitute Bill No. 7082
	261	+	LCO No. 5224 8 of 15
	262	+
	263	+	(5) That the transaction is irrevocable, or if there is any exception to 196
	264	+	such irrevocability; 197
	265	+	(6) A description of (A) the person's liability for an unauthorized, 198
	266	+	mistaken or accidental transaction, (B) the person's responsibility to 199
	267	+	provide notice to the licensee of such unauthorized, mistaken or 200
	268	+	accidental transaction, (C) the basis for any recovery by the person from 201
	269	+	the licensee, (D) the general rights of the person to resolve an error 202
	270	+	related to the transaction, and (E) the method for the person to update 203
	271	+	the person's contact information with the licensee; 204
	272	+	(7) That the date or time when the transaction is completed and the 205
	273	+	person's account is debited may differ from the date or time when the 206
	274	+	person initiates the transaction; 207
	275	+	(8) Whether the person has a right to stop a preauthorized transaction 208
	276	+	or revoke an authorization for a transaction, and the procedure to 209
	277	+	initiate such stop or revocation; 210
	278	+	(9) The person's right to receive a receipt, trade ticket or other 211
	279	+	evidence of the transaction; 212
	280	+	(10) The person's right to receive not less than thirty days' notice of 213
	281	+	any change in the licensee's fee schedule, other terms or conditions of 214
	282	+	the licensee's virtual currency business and any policy applicable to the 215
	283	+	person's account; 216
	284	+	(11) That virtual currency is not money; and 217
	285	+	(12) Any additional disclosure the Banking Commissioner 218
	286	+	determines to be reasonably necessary for the protection of the public. 219
	287	+	(b) Each licensee that engages in the business of money transmission 220
	288	+	in this state by receiving, transmitting, storing or maintaining custody 221
	289	+	or control of virtual currency shall, upon the completion of any virtual 222
	290	+	currency transaction with a person, provide to the person a receipt 223
	291	+	containing the following information: 224
	292	+	Raised Bill No. 7082
278	293
279	294
280		-	LCO 9 of 14
281	295
282		-	the amount of any difference between the price paid by the person for 234
283		-	virtual currency and the prevailing market price of such virtual 235
284		-	currency. 236
285		-	(c) The Banking Commissioner may waive a disclosure or receipt 237
286		-	requirement established by subsection (a) or (b) of this section and 238
287		-	approve an alternative disclosure or receipt proposed by a licensee, if 239
288		-	the commissioner determines that the alternative disclosure or receipt is 240
289		-	more appropriate for the virtual currency business of such licensee and 241
290		-	provides the same or equivalent information and protection to the 242
291		-	public. 243
292		-	(d) A licensee that engages in the business of money transmission in 244
293		-	this state by receiving, transmitting, storing or maintaining custody or 245
294		-	control of virtual currency shall not: 246
295		-	(1) Sell, transfer, assign, lend, hypothecate, pledge or otherwise use 247
296		-	or encumber virtual currency stored, held, controlled, maintained by, or 248
297		-	under the custody or control of, such licensee on behalf of a person, 249
298		-	except for the sale, transfer of ownership or assignment of such virtual 250
299		-	currency at the direction of such person; or 251
300		-	(2) Directly or indirectly use or engage any other person, including, 252
301		-	but not limited to, a virtual currency control services vendor, to store or 253
302		-	hold custody or control of virtual currency for or on behalf of a 254
303		-	customer, unless such other person is (A) licensed pursuant to sections 255
304		-	36a-595 to 36a-612, inclusive, of the general statutes, (B) a federally 256
305		-	insured federal bank, out-of-state bank, Connecticut bank, Connecticut 257
306		-	credit union, federal credit union or out-of-state credit union that is 258
307		-	exempt from licensure under section 36a-609 of the general statutes, or 259
308		-	(C) approved by the Banking Commissioner to store or hold custody or 260
309		-	control of virtual currency for or on behalf of a customer. 261
310		-	Sec. 3. Section 36a-603 of the general statutes is repealed and the 262
311		-	following is substituted in lieu thereof (Effective October 1, 2025): 263
312		-	(a) Each licensee shall at all times maintain permissible investments 264 Substitute Bill No. 7082
	296	+	LCO No. 5224 9 of 15
	297	+
	298	+	(1) The name and contact information of the licensee; 225
	299	+	(2) A description of how the person may ask a question or file a 226
	300	+	complaint; 227
	301	+	(3) The type, date and precise time of the transaction; 228
	302	+	(4) The value of the transaction, expressed in United States dollars; 229
	303	+	and 230
	304	+	(5) Any consideration the licensee charged for the transaction, 231
	305	+	including, but not limited to (A) any charge, fee or commission, and (B) 232
	306	+	the amount of any difference between the price paid by the person for 233
	307	+	virtual currency and the prevailing market price of such virtual 234
	308	+	currency. 235
	309	+	(c) The Banking Commissioner may waive a disclosure or receipt 236
	310	+	requirement established by subsection (a) or (b) of this section and 237
	311	+	approve an alternative disclosure or receipt proposed by a licensee, if 238
	312	+	the commissioner determines that the alternative disclosure or receipt is 239
	313	+	more appropriate for the virtual currency business of such licensee and 240
	314	+	provides the same or equivalent information and protection to the 241
	315	+	public. 242
	316	+	(d) A licensee that engages in the business of money transmission in 243
	317	+	this state by receiving, transmitting, storing or maintaining custody or 244
	318	+	control of virtual currency shall not: 245
	319	+	(1) Sell, transfer, assign, lend, hypothecate, pledge or otherwise use 246
	320	+	or encumber virtual currency stored, held, controlled, maintained by, or 247
	321	+	under the custody or control of, such licensee on behalf of a person, 248
	322	+	except for the sale, transfer of ownership or assignment of such virtual 249
	323	+	currency at the direction of such person; or 250
	324	+	(2) Directly or indirectly use or engage any other person, including, 251
	325	+	but not limited to, a virtual currency control services vendor, to store or 252
	326	+	hold custody or control of virtual currency for or on behalf of a 253
	327	+	Raised Bill No. 7082
313	328
314	329
315		-	LCO 10 of 14
316	330
317		-	~~having a value,~~ ~~computed in accordance with generally accepted 265~~
318		-	~~accounting principles, at least equal to the aggregate amount of its 266~~
319		-	~~outstanding money transmissions in this state~~, ~~provided the value of 267~~
320		-	~~receivables due from authorized delegates consisting~~ of the ~~proceeds of 268~~
321		-	~~the sale~~ of ~~payment instruments that are not past due or doubtful of 269~~
322		-	~~collection shall not exceed thirty per cent of the permissible investments 270~~
323		-	~~held by~~ the ~~licensee and receivables due from any one person shall not 271~~
324		-	~~exceed ten per cent of the value of permissible investments held~~ by the ~~272~~
325		-	~~licensee~~. ~~273~~
326		-	~~(b) Each licensee that engages in~~ the ~~business of money transmission 274~~
327		-	in ~~this state by receiving~~, ~~transmitting, storing or maintaining custody 275~~
328		-	~~or control of virtual currency on behalf of another person~~ shall at all ~~276~~
329		-	~~times hold virtual currency of the same type and amount owed or 277~~
330		-	~~obligated~~ to ~~such other person. As used in subsection (a)~~ of ~~this section,~~ ~~278~~
331		-	outstanding money transmissions ~~does not include any virtual currency 279~~
332		-	~~held pursuant to this subsection,~~ ~~and "value" means~~ the ~~lower~~ of ~~book 280~~
333		-	~~or market value,~~ ~~except~~ that ~~with regard to debt obligations which the 281~~
334		-	~~licensee as a matter~~ of ~~policy retains until maturity, "value" means~~ the ~~282~~
335		-	~~greater of book or market value unless~~ the ~~commissioner orders that for 283~~
336		-	~~some or all~~ investments ~~of a particular licensee, "value" means~~ the ~~lower 284~~
337		-	~~of book or market value~~. ~~285~~
338		-	(c) ~~Permissible investments and virtual currency held pursuant to 286~~
339		-	~~subsection (b) of~~ this ~~section~~, ~~even if commingled with other assets of 287~~
340		-	~~the licensee,~~ shall ~~be deemed by operation of law to be (1) property 288~~
341		-	~~interests~~ of ~~any claimants against~~ the ~~licensee, on a pro rata basis~~ and ~~in 289~~
342		-	~~the type and amount~~ of ~~virtual currency to which such claimants are 290~~
343		-	~~entitled, without regard to the time when (A) such claimants became 291~~
344		-	~~entitled~~ to ~~such virtual currency~~, ~~or (B)~~ the ~~licensee obtained control~~ of ~~292~~
345		-	~~such virtual currency~~, ~~(2) held in trust for~~ the ~~benefit of any claimants 293~~
346		-	~~against~~ the ~~licensee to serve the faithful performance of the obligations 294~~
347		-	of the ~~licensee and the licensee's authorized delegates with respect to 295~~
348		-	~~the~~ licensee~~'s money transmission business in this state in~~ the ~~event of 296~~
349		-	~~the bankruptcy~~ of ~~the licensee,~~ ~~and [shall~~ ~~be] (3) immune from 297~~
350		-	~~attachment by creditors or judgment creditors. 298 Substitute~~ Bill No. 7082
	331	+	LCO No. 5224 10 of 15
	332	+
	333	+	customer, unless such other person is (A) licensed pursuant to sections 254
	334	+	36a-595 to 36a-612, inclusive, of the general statutes, (B) a federally 255
	335	+	insured federal bank, out-of-state bank, Connecticut bank, Connecticut 256
	336	+	credit union, federal credit union or out-of-state credit union that is 257
	337	+	exempt from licensure under section 36a-609 of the general statutes, or 258
	338	+	(C) approved by the Banking Commissioner to store or hold custody or 259
	339	+	control of virtual currency for or on behalf of a customer. 260
	340	+	Sec. 3. Section 36a-603 of the general statutes is repealed and the 261
	341	+	following is substituted in lieu thereof (Effective October 1, 2025): 262
	342	+	(a) Each licensee shall at all times maintain permissible investments 263
	343	+	having a value, computed in accordance with generally accepted 264
	344	+	accounting principles, at least equal to the aggregate amount of its 265
	345	+	outstanding money transmissions in this state, provided the value of 266
	346	+	receivables due from authorized delegates consisting of the proceeds of 267
	347	+	the sale of payment instruments that are not past due or doubtful of 268
	348	+	collection shall not exceed thirty per cent of the permissible investments 269
	349	+	held by the licensee and receivables due from any one person shall not 270
	350	+	exceed ten per cent of the value of permissible investments held by the 271
	351	+	licensee. 272
	352	+	(b) Each licensee that engages in the business of money transmission 273
	353	+	in this state by receiving, transmitting, storing or maintaining custody 274
	354	+	or control of virtual currency on behalf of another person shall at all 275
	355	+	times hold virtual currency of the same type and amount owed or 276
	356	+	obligated to such other person. As used in subsection (a) of this section, 277
	357	+	outstanding money transmissions does not include any virtual currency 278
	358	+	held pursuant to this subsection, and "value" means the lower of book 279
	359	+	or market value, except that with regard to debt obligations which the 280
	360	+	licensee as a matter of policy retains until maturity, "value" means the 281
	361	+	greater of book or market value unless the commissioner orders that for 282
	362	+	some or all investments of a particular licensee, "value" means the lower 283
	363	+	of book or market value. 284
	364	+	Raised Bill No. 7082
351	365
352	366
353		-	LCO 11 of 14
354	367
355		-	Sec. 4. Subsection (a) of section 36a-607 of the general statutes is 299
356		-	repealed and the following is substituted in lieu thereof (Effective October 300
357		-	1, 2025): 301
358		-	(a) [A] Except as provided in subsection (d) of section 2 of this act, a 302
359		-	licensee may conduct its business at one or more locations within this 303
360		-	state as follows: 304
361		-	(1) The business may be conducted by the licensee or through or by 305
362		-	means of such authorized delegates as the licensee may periodically 306
363		-	designate or appoint on the system in such form and manner as required 307
364		-	by the commissioner. The licensee shall pay any associated processing 308
365		-	fees imposed by the system. The licensee shall notify the commissioner 309
366		-	on the system of all authorized delegates that act on its behalf. An 310
367		-	authorized delegate may not engage in the business of money 311
368		-	transmission in this state on behalf of a licensee through or by means of 312
369		-	any person who is not identified on the system as an authorized 313
370		-	delegate of the licensee. 314
371		-	(2) No license under sections 36a-595 to 36a-612, inclusive, shall be 315
372		-	required of any authorized delegate. 316
373		-	(3) Each authorized delegate shall, from the moment of receipt, hold 317
374		-	the proceeds of a sale or delivery of a licensee's money transmissions in 318
375		-	this state in trust for the benefit of such licensee. 319
376		-	(4) A licensee shall be liable for the loss caused to any purchaser or 320
377		-	holder of the licensee's payment instruments or stored value sold in this 321
378		-	state by the failure of an authorized delegate to forward to the licensee 322
379		-	the amount due from the proceeds of a sale or delivery of the licensee's 323
380		-	payment instruments or stored value, or money or monetary value 324
381		-	received for transmission. 325
382		-	(5) The licensee shall enter into a contract with each of its authorized 326
383		-	delegates that requires the authorized delegate to operate in full 327
384		-	compliance with sections 36a-595 to 36a-612, inclusive, and provides 328
385		-	that appointment of the authorized delegate is not effective during any 329 Substitute Bill No. 7082
	368	+	LCO No. 5224 11 of 15
	369	+
	370	+	(c) Permissible investments and virtual currency held pursuant to 285
	371	+	subsection (b) of this section, even if commingled with other assets of 286
	372	+	the licensee, shall be deemed by operation of law to be (1) property 287
	373	+	interests of any claimants against the licensee, on a pro rata basis and in 288
	374	+	the type and amount of virtual currency to which such claimants are 289
	375	+	entitled, without regard to the time when (A) such claimants became 290
	376	+	entitled to such virtual currency, or (B) the licensee obtained control of 291
	377	+	such virtual currency, (2) held in trust for the benefit of any claimants 292
	378	+	against the licensee to serve the faithful performance of the obligations 293
	379	+	of the licensee and the licensee's authorized delegates with respect to 294
	380	+	the licensee's money transmission business in this state in the event of 295
	381	+	the bankruptcy of the licensee, and [shall be] (3) immune from 296
	382	+	attachment by creditors or judgment creditors. 297
	383	+	Sec. 4. Subsection (a) of section 36a-607 of the general statutes is 298
	384	+	repealed and the following is substituted in lieu thereof (Effective October 299
	385	+	1, 2025): 300
	386	+	(a) [A] Except as provided in subsection (d) of section 2 of this act, a 301
	387	+	licensee may conduct its business at one or more locations within this 302
	388	+	state as follows: 303
	389	+	(1) The business may be conducted by the licensee or through or by 304
	390	+	means of such authorized delegates as the licensee may periodically 305
	391	+	designate or appoint on the system in such form and manner as required 306
	392	+	by the commissioner. The licensee shall pay any associated processing 307
	393	+	fees imposed by the system. The licensee shall notify the commissioner 308
	394	+	on the system of all authorized delegates that act on its behalf. An 309
	395	+	authorized delegate may not engage in the business of money 310
	396	+	transmission in this state on behalf of a licensee through or by means of 311
	397	+	any person who is not identified on the system as an authorized 312
	398	+	delegate of the licensee. 313
	399	+	(2) No license under sections 36a-595 to 36a-612, inclusive, shall be 314
	400	+	required of any authorized delegate. 315
	401	+	Raised Bill No. 7082
386	402
387	403
388		-	LCO 12 of 14
389	404
390		-	period when the license of the licensee has been suspended. The licensee 330
391		-	shall provide each authorized delegate with policies and procedures 331
392		-	sufficient to ensure compliance with sections 36a-595 to 36a-612, 332
393		-	inclusive. 333
394		-	(6) An authorized delegate shall remit all money owing to the licensee 334
395		-	in accordance with the terms of the contract between the licensee and 335
396		-	the authorized delegate. 336
397		-	(7) An authorized delegate shall not provide money transmission 337
398		-	services in this state outside the scope of activity permissible under the 338
399		-	contract between the authorized delegate and the licensee. 339
400		-	Sec. 5. Subsection (e) of section 36a-613 of the general statutes is 340
401		-	repealed and the following is substituted in lieu thereof (Effective October 341
402		-	1, 2025): 342
403		-	(e) (1) The owner or operator of a virtual currency kiosk shall, upon 343
404		-	the completion of any virtual currency transaction, provide to the 344
405		-	customer a receipt, in addition to the receipt required pursuant to 345
406		-	subsection (b) of section 2 of this act, containing the following 346
407		-	information: 347
408		-	(A) The name of, and contact information for, the owner or operator, 348
409		-	including, but not limited to, the owner or operator's business address 349
410		-	and a customer service telephone number established by the owner or 350
411		-	operator to answer questions and register complaints; 351
412		-	(B) The name of the customer; 352
413		-	(C) The type, value, date and precise time of such virtual currency 353
414		-	transaction, and each virtual currency address; 354
415		-	(D) The amount of such virtual currency transaction expressed in 355
416		-	United States currency; 356
417		-	(E) The full unique transaction hash or identification number; 357 Substitute Bill No. 7082
	405	+	LCO No. 5224 12 of 15
	406	+
	407	+	(3) Each authorized delegate shall, from the moment of receipt, hold 316
	408	+	the proceeds of a sale or delivery of a licensee's money transmissions in 317
	409	+	this state in trust for the benefit of such licensee. 318
	410	+	(4) A licensee shall be liable for the loss caused to any purchaser or 319
	411	+	holder of the licensee's payment instruments or stored value sold in this 320
	412	+	state by the failure of an authorized delegate to forward to the licensee 321
	413	+	the amount due from the proceeds of a sale or delivery of the licensee's 322
	414	+	payment instruments or stored value, or money or monetary value 323
	415	+	received for transmission. 324
	416	+	(5) The licensee shall enter into a contract with each of its authorized 325
	417	+	delegates that requires the authorized delegate to operate in full 326
	418	+	compliance with sections 36a-595 to 36a-612, inclusive, and provides 327
	419	+	that appointment of the authorized delegate is not effective during any 328
	420	+	period when the license of the licensee has been suspended. The licensee 329
	421	+	shall provide each authorized delegate with policies and procedures 330
	422	+	sufficient to ensure compliance with sections 36a-595 to 36a-612, 331
	423	+	inclusive. 332
	424	+	(6) An authorized delegate shall remit all money owing to the licensee 333
	425	+	in accordance with the terms of the contract between the licensee and 334
	426	+	the authorized delegate. 335
	427	+	(7) An authorized delegate shall not provide money transmission 336
	428	+	services in this state outside the scope of activity permissible under the 337
	429	+	contract between the authorized delegate and the licensee. 338
	430	+	Sec. 5. Subsection (e) of section 36a-613 of the general statutes is 339
	431	+	repealed and the following is substituted in lieu thereof (Effective October 340
	432	+	1, 2025): 341
	433	+	(e) (1) The owner or operator of a virtual currency kiosk shall, upon 342
	434	+	the completion of any virtual currency transaction, provide to the 343
	435	+	customer a receipt, in addition to the receipt required pursuant to 344
	436	+	subsection (b) of section 2 of this act, containing the following 345
	437	+	Raised Bill No. 7082
418	438
419	439
420		-	LCO 13 of 14
421	440
422		-	(F) The public virtual currency address of the customer; 358
423		-	(G) The unique identifier; 359
424		-	(H) Any fee charged, including, but not limited to, any fee charged 360
425		-	directly or indirectly by the owner or operator or a third party involved 361
426		-	in such virtual currency transaction; 362
427		-	(I) The exchange rate, if applicable; 363
428		-	(J) Any tax collected by the owner or operator for such virtual 364
429		-	currency transaction; 365
430		-	(K) A statement of the liability of the owner or operator for 366
431		-	nondelivery or delayed delivery; 367
432		-	(L) A statement of the refund policy of the owner or operator; 368
433		-	(M) The name and telephone number of the Department of Banking 369
434		-	and a statement disclosing that the owner or operator's customers may 370
435		-	contact the department with questions or complaints about the owner 371
436		-	or operator's virtual currency kiosk services; and 372
437		-	(N) Any additional information the Banking Commissioner may 373
438		-	require. 374
439		-	(2) The receipt required under subdivision (1) of this subsection: 375
440		-	(A) Shall be provided in (i) a retainable form, (ii) the English 376
441		-	language, and (iii) the language principally used by the owner or 377
442		-	operator of the virtual currency kiosk to advertise, solicit or negotiate, 378
443		-	either orally or in writing; and 379
444		-	(B) May be provided electronically if the customer requests or agrees 380
445		-	to receive an electronic receipt. 381
446		-	Sec. 6. (NEW) (Effective October 1, 2025) Neither the state nor any 382
447		-	political subdivision of the state shall (1) accept or require payment in 383
448		-	the form of virtual currency for an amount due to the state or the 384 Substitute Bill No. 7082
	441	+	LCO No. 5224 13 of 15
	442	+
	443	+	information: 346
	444	+	(A) The name of, and contact information for, the owner or operator, 347
	445	+	including, but not limited to, the owner or operator's business address 348
	446	+	and a customer service telephone number established by the owner or 349
	447	+	operator to answer questions and register complaints; 350
	448	+	(B) The name of the customer; 351
	449	+	(C) The type, value, date and precise time of such virtual currency 352
	450	+	transaction, and each virtual currency address; 353
	451	+	(D) The amount of such virtual currency transaction expressed in 354
	452	+	United States currency; 355
	453	+	(E) The full unique transaction hash or identification number; 356
	454	+	(F) The public virtual currency address of the customer; 357
	455	+	(G) The unique identifier; 358
	456	+	(H) Any fee charged, including, but not limited to, any fee charged 359
	457	+	directly or indirectly by the owner or operator or a third party involved 360
	458	+	in such virtual currency transaction; 361
	459	+	(I) The exchange rate, if applicable; 362
	460	+	(J) Any tax collected by the owner or operator for such virtual 363
	461	+	currency transaction; 364
	462	+	(K) A statement of the liability of the owner or operator for 365
	463	+	nondelivery or delayed delivery; 366
	464	+	(L) A statement of the refund policy of the owner or operator; 367
	465	+	(M) The name and telephone number of the Department of Banking 368
	466	+	and a statement disclosing that the owner or operator's customers may 369
	467	+	contact the department with questions or complaints about the owner 370
	468	+	Raised Bill No. 7082
449	469
450	470
451		-	LCO 14 of 14
452	471
453		-	political subdivision, or (2) purchase, hold, invest in or establish a 385
454		-	reserve of virtual currency. For purposes of this section, "virtual 386
455		-	currency" has the same meaning as provided in section 36a-596 of the 387
456		-	general statutes, as amended by this act. 388
	472	+	LCO No. 5224 14 of 15
	473	+
	474	+	or operator's virtual currency kiosk services; and 371
	475	+	(N) Any additional information the Banking Commissioner may 372
	476	+	require. 373
	477	+	(2) The receipt required under subdivision (1) of this subsection: 374
	478	+	(A) Shall be provided in (i) a retainable form, (ii) the English 375
	479	+	language, and (iii) the language principally used by the owner or 376
	480	+	operator of the virtual currency kiosk to advertise, solicit or negotiate, 377
	481	+	either orally or in writing; and 378
	482	+	(B) May be provided electronically if the customer requests or agrees 379
	483	+	to receive an electronic receipt. 380
	484	+	Sec. 6. (NEW) (Effective October 1, 2025) Neither the state nor any 381
	485	+	political subdivision of the state shall (1) accept or require payment in 382
	486	+	the form of virtual currency for an amount due to the state or the 383
	487	+	political subdivision, or (2) purchase, hold, invest in or establish a 384
	488	+	reserve of virtual currency. For purposes of this section, "virtual 385
	489	+	currency" has the same meaning as provided in section 36a-596 of the 386
	490	+	general statutes, as amended by this act. 387
457	491		This act shall take effect as follows and shall amend the following
458	492		sections:
459	493
460	494		Section 1 October 1, 2025 36a-596
461	495		Sec. 2 October 1, 2025 New section
462	496		Sec. 3 October 1, 2025 36a-603
463	497		Sec. 4 October 1, 2025 36a-607(a)
464	498		Sec. 5 October 1, 2025 36a-613(e)
465	499		Sec. 6 October 1, 2025 New section
466	500
467		-	Statement of Legislative Commissioners:
468		-	Section 2(a)(4) was rewritten for clarity; and in Section 2(a)(10), "receive
469		-	not less than thirty days' notice of any change" was changed to "receive
470		-	notice not less than thirty days before any change" for clarity and
471		-	consistency with standard drafting conventions.
	501	+	Statement of Purpose:
	502	+	To (1) define "virtual currency control services vendor", (2) establish
	503	+	requirements for virtual currency money transmission licensees
	504	+	concerning (A) disclosures, (B) receipts, (C) the use of virtual currency
	505	+	under the control of such licensees, and (D) the engagement of other
	506	+	Raised Bill No. 7082
472	507
473		-	BA Joint Favorable Subst. -LCO
	508	+
	509	+
	510	+	LCO No. 5224 15 of 15
	511	+
	512	+	persons to store or hold custody or control of virtual currency for or on
	513	+	behalf of a customer, (3) establish that certain virtual currency held by
	514	+	such licensees shall be deemed to be property interests of any claimants
	515	+	against such licensees, and (4) prohibit the state, and political
	516	+	subdivisions of the state, from (A) accepting or requiring payment in the
	517	+	form of virtual currency, or (B) purchasing, holding, investing in or
	518	+	establishing a reserve of virtual currency.
	519	+
	520	+	[Proposed deletions are enclosed in brackets. Proposed additions are indicated by underline, except
	521	+	that when the entire text of a bill or resolution or a section of a bill or resolution is new, it is not
	522	+	underlined.]
474	523