Florida’s Strategic Bitcoin Reserve Plans Shelved
Florida has recently decided to abandon its plans for a Strategic Bitcoin Reserve, putting a halt to two crucial bills that would have permitted public funds to be invested in Bitcoin. The Florida Senate announced that both House Bill 487 and Senate Bill 550, which aimed to establish a Bitcoin reserve, were “indefinitely postponed and withdrawn from consideration” on May 3.
The legislative session in Florida ended on May 2 without a vote on either bill, effectively ending the proposal despite initial support. HB 487, titled “Investments of Public Funds in Bitcoin,” was introduced in February and passed its first committee hearing unanimously on April 10. The bill would have allowed the state’s Chief Financial Officer and the State Board of Administration to allocate up to 10% of key public funds, such as the General Revenue Fund and Budget Stabilization Fund, into Bitcoin. It also included provisions for lending BTC and using it in exchange-traded products, while outlining strict custody and compliance requirements.
SB 550, a companion bill introduced in the same month, shared similar objectives and sought to authorize comparable investments from Florida’s state funds. Unfortunately, with neither bill progressing beyond the committee stages before the session adjourned, Florida’s attempt to join the ranks of states exploring Bitcoin-backed treasuries has come to a standstill.
Florida now joins a list of states that have seen their Bitcoin reserve initiatives falter. States like Wyoming, South Dakota, North Dakota, Pennsylvania, Montana, and Oklahoma have all experienced similar setbacks with bills failing to pass House or Senate votes in recent months. Oklahoma’s HB 1203, for instance, made it through several legislative hurdles but was narrowly voted down in committee following bipartisan opposition.
Despite the growing interest in Bitcoin as a hedge against inflation and a diversification tool for state treasuries, several states have faced challenges in implementing Bitcoin reserve plans. Lawmakers had viewed these initiatives as a way to modernize public finance and reduce dependence on traditional fiat currencies.
Arizona has been at the forefront of this movement, with the legislature passing SB 1025 and SB 1373 to establish a Strategic Bitcoin Reserve. However, Governor Katie Hobbs vetoed SB 1025, citing concerns over digital assets being “untested investments” and budget constraints. Arizona still has two active bills, HB 2749 and SB 1373, with HB 2749 proposing a budget-neutral reserve funded by unclaimed property profits and SB 1373 allowing up to 10% of state funds to be invested in digital assets.