Florida Proposes Strategic Bitcoin Reserve Fund After Initial Backlash

Florida Limits Its Cryptocurrency Ambitions

Florida lawmakers are advancing a proposal that would allow the state to create a strategic cryptocurrency fund, thereby narrowing previous efforts to a framework that limits holdings to Bitcoin. The proposal, known as Senate Bill (SB) 1038, has now been sent to the Approval Committee and must pass through hearings and votes before reaching the Senate floor.

The bill would establish a Strategic Cryptocurrency Fund in Florida, managed by the state's Chief Financial Officer, who would have the authority to purchase, hold, manage, and liquidate cryptocurrencies, governed by rules similar to those that regulate public trust assets. Although the legislation does not explicitly mention Bitcoin, acquisitions are limited to cryptocurrencies that have maintained an average market capitalization of at least $500 billion over the past twenty months, a threshold that only Bitcoin meets.

The new proposal follows a previous broader effort that was halted. Earlier, a legislative initiative attempted to permit the state and public entities to invest up to 10% of their funds in digital assets, but this faced opposition from legislators.

SB 1038 completely removes pension and retirement funds, placing oversight directly under the responsibility of the Chief Financial Officer. The bill is contingent on accompanying legislation that must be adopted in the same legislative session. If the legislation progresses, the Chief Financial Officer will need to report to legislative leaders beginning December 2026, detailing the fund’s holdings and management actions.