Connecticut's House Bill 6991 aims to redefine the landscape of digital finance by clarifying regulations surrounding digital wallets and money transmission. Introduced on February 19, 2025, the bill seeks to establish a clear definition of "digital wallet" while also redefining "money transmission" and "stored value" within the state's money transmission statutes.

A key provision of the bill prohibits money transmission licensees from advertising that funds deposited with them are eligible for Federal Deposit Insurance Corporation (FDIC) protections. This move is designed to prevent potential consumer confusion regarding the safety of funds in digital wallets, which do not offer the same protections as traditional bank accounts.

The bill has sparked notable debates among lawmakers and financial experts. Proponents argue that the legislation is essential for consumer protection in an increasingly digital economy, ensuring that users are fully informed about the nature of their funds. Critics, however, express concerns that the restrictions on advertising could stifle innovation in the fintech sector and limit consumer access to emerging financial technologies.

As the bill progresses, its implications could resonate beyond Connecticut, potentially influencing how other states approach digital finance regulation. Experts suggest that if passed, House Bill 6991 could set a precedent for clearer guidelines in the rapidly evolving digital payment landscape, balancing consumer protection with the need for innovation.

With an effective date set for October 1, 2025, stakeholders are closely monitoring the bill's journey through the legislature, anticipating its impact on both consumers and the financial industry at large.