Florida proposes investing up to 10% of state funds in bitcoins

According to supporters, this approach will help protect the state’s financial reserves from economic volatility

10.02.2025 - 10:30

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What’s new? Florida State Senator Joe Gruters has filed a bill that would allow the state’s chief financial officer to invest state funds in bitcoins, but no more than 10% of the total state budget. The bill, known as SB 550, seeks to incorporate cryptocurrency into Florida’s financial strategy as a hedge against inflation. The bill states:

“The chief financial officer … may include bitcoin and other digital assets to serve as stores of value and provide a hedge against inflation, thereby protecting the purchasing power of state funds.”

Supporters believe that by incorporating bitcoins into the state’s investment portfolio, Florida will be better able to protect its financial reserves from economic volatility.

Blockchain lobbyists will support a bill to create a BTC reserve in Florida

Sources of funding for cryptocurrency purchases could come from the pension fund and the state’s surplus budget

What else is known? The bill lays out three ways in which the state can store BTC:

Directly through a secure storage solution;
with a qualified custodian;
as an exchange-traded product approved by the US Securities and Exchange Commission (SEC).

It also allows the CFO to lend bitcoin assets under certain conditions to generate additional revenue, provided the loans do not expose the state to increased financial risk.

If passed, the legislation would allow Florida to accept taxes and fees in BTC, with payments converted to US dollars and deposited into the General Revenue Fund, which the government uses for current spending. SB 550 amends several sections of Florida law to align with this policy, including investment rules for public and pension funds.

It was previously reported that Utah could be the first in the United States to pass a bill to create a state-level bitcoin reserve. This is possible due to a shorter legislative window and “political momentum.”

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