An Act Concerning Definitions Applicable To The Money Transmission Statutes And Solicitations And Advertisements By Money Transmission Licensees.
Summary
HB 6991 updates Connecticut’s money transmission statutes by revising and expanding key statutory definitions used in the licensing and regulation of money transmitters. The bill adds or clarifies terms such as digital wallet, virtual currency, virtual currency kiosk, virtual currency address, virtual currency wallet, stored value, monetary value, control, control person, passive investor, and existing customer/new customer for kiosk transactions. It also broadens the definition of money transmission to expressly include transactions involving virtual currency kiosks and digital wallets, including digital wallets used with consumer payment mobile applications.
The bill also revises advertising and solicitation rules for money transmission licensees. It requires a licensee’s unique identifier to appear on solicitations and advertisements, including business cards, websites, and audio ads, while prohibiting statements that imply state endorsement, are deceptive or misleading, or suggest FDIC insurance coverage for deposited funds. Third-party website ads may omit the unique identifier if they link to a page that clearly displays it. The bill takes effect October 1, 2025.
Impact
The bill amends sections 36a-596 and 36a-611(c) of the Connecticut General Statutes, affecting the state’s money transmission licensing and consumer disclosure framework. Its practical impact is to bring newer payment technologies and virtual currency business models more explicitly within the regulatory definitions used by the Department of Banking, while also tightening marketing and disclosure standards for licensees. Money transmitters, virtual currency kiosk operators, digital wallet providers, authorized delegates, and related control persons may face clearer compliance obligations and oversight.
Sentiment
The available voting history shows strong committee support, with a 11-0 Joint Favorable vote and no recorded opposition in the provided materials. That suggests the bill was viewed as a technical and regulatory update rather than a controversial policy change. No committee transcript excerpts were provided, so there is no evidence in the record here of significant public debate or divided sentiment.
Contention
The main potential points of contention are the expanded regulatory reach over virtual currency and digital wallet activity, and the detailed ownership/control definitions that can capture passive investors and family-held interests when determining control of a licensee. Industry participants may also focus on the advertising restrictions, especially the requirement to display a unique identifier and the prohibition on any implication of FDIC coverage or state endorsement. However, the provided materials do not show active opposition, and the bill appears to have advanced without recorded dissent.