Florida Advances Bitcoin Reserve Legislation After Earlier Proposals Stalled

Revised Legislation Focuses Exclusively on Bitcoin

Florida is making a renewed push to establish a state-level cryptocurrency reserve through legislation that would authorize the state's chief financial officer to invest public funds in digital assets, with restrictions that effectively limit eligible holdings to Bitcoin ^[1][2].

Senate Bill 1038, sponsored by Republican Senator Joe Gruters, was filed on December 30 and referred to the Appropriations Committee on Agriculture, Environment, and General Government ^[1]. A companion measure, House Bill 1039, was filed January 7 by Republican Representative John Snyder ^[2]. The legislation would create a Florida Strategic Cryptocurrency Reserve Fund that operates outside the state's main treasury ^[2].

While neither bill explicitly names Bitcoin, both restrict eligible purchases to cryptocurrencies that maintained an average market capitalization of at least $500 billion over the past two years ^[1][2]. Bitcoin is currently the only digital asset meeting that threshold, with a market cap exceeding $1 trillion, while other cryptocurrencies fall significantly short ^[2].

Narrower Approach After Previous Setbacks

The current proposals represent a substantial departure from earlier efforts that failed to gain legislative support. In October 2025, Republican Representative Webster Barnaby filed House Bill 183, which sought to allow the state and certain public entities to invest up to 10% of their funds in a broad range of digital assets, including Bitcoin, crypto exchange-traded products, non-fungible tokens, and other blockchain-based products ^[1].

That measure was itself a revision of HB 487, which was withdrawn in June after failing to advance out of a House operations subcommittee ^[1]. Despite adding stricter custody, documentation and fiduciary standards, Barnaby's revised proposal faced pushback from lawmakers concerned about the broad asset scope and potential exposure of pension and trust funds ^[1].

The new legislation addresses those concerns by removing pension and retirement funds entirely from eligibility and placing oversight directly under the chief financial officer through a standalone reserve structure ^[1][2].

Management Structure and Oversight Requirements

Under the proposed framework, Florida's chief financial officer would have discretion over whether and when to invest, with no minimum allocation mandated ^[2]. The CFO would be authorized to purchase, hold, manage and liquidate cryptocurrency under standards similar to those governing public trust assets ^[1].

The legislation includes requirements for independent audits and the creation of an advisory committee to guide investment strategy and risk management ^[2]. If the bills advance, the CFO would be required to submit reports to legislative leaders starting in December 2026, detailing the reserve's holdings, value and management actions ^[1].

Florida Chief Financial Officer Jimmy Patronis has publicly characterized Bitcoin as "digital gold" and stated that limited exposure could help diversify state-managed funds over extended time periods ^[2]. The legislation indicates the reserve is intended to help protect public assets against inflation and currency debasement ^[2].

Legislative Path Forward

SB 1038 is contingent on companion legislation establishing the necessary trust-fund mechanics for the reserve, meaning it cannot take effect unless related bills are also enacted during the same legislative session ^[1]. The bills include a conditional effective date of July 1, 2026 ^[2].

The coordinated Senate and House backing signals stronger legislative alignment than previous efforts ^[1]. The market-cap eligibility requirement mirrors approaches adopted in states like New Hampshire and Texas, both of which enacted more narrowly defined Bitcoin reserve frameworks in 2025 ^[1].

Whether the proposal ultimately succeeds will depend on whether lawmakers view the narrower, Bitcoin-focused structure as sufficiently distinct from earlier efforts that failed to gain traction ^[1]. Both bills must clear committee hearings and floor votes during the 2026 legislative session before advancing ^[2].