Florida could become the next U.S. state to embrace Bitcoin for public fund investments, with a key legislative hearing scheduled this week.
Florida’s Bitcoin Reserve Bill Heads to Public Hearing
Florida lawmakers are set to consider a bold move into digital assets as House Bill 487 also known as the “Bitcoin Reserve Bill” is scheduled for its first public hearing on Wednesday, April 10. The proposal will be reviewed by the state’s Insurance & Banking Subcommittee, marking a significant step forward since its introduction two months ago.
If passed, the bill would authorize Florida’s Chief Financial Officer (CFO) to invest up to 10% of state funds in Bitcoin (BTC). It would also give the Trustees of the State Board of Administration the power to invest assets from the System Trust Fund into Bitcoin, signaling institutional-level adoption at the state level.
Provisions for Custody, Lending, and Tax Handling
The bill sets clear guidelines for how Bitcoin would be held and managed. Key elements include:
- Secure Custody Requirements: Any Bitcoin investment must adhere to defined custody standards to ensure asset protection.
- Lending Authorization: The CFO and designated parties may loan out Bitcoin held in the state treasury, potentially earning yield.
- Tax Payments in Bitcoin: Any taxes or fees paid in Bitcoin must be converted to U.S. dollars and deposited into Florida’s General Revenue Fund. That fund would then disburse reimbursements to the appropriate state accounts in fiat.
The bill also exempts these investments from some state security regulations, giving Florida greater flexibility to manage Bitcoin holdings under a defined legal framework.
Momentum Building Across the U.S.
Florida isn’t alone in its push toward Bitcoin-backed reserves. Similar bills have been introduced in multiple states including Utah, Missouri, Oklahoma, Arizona, and Kentucky. Utah’s Bitcoin Reserve Bill has already passed its House Economic Development Committee and is now awaiting deliberation in the Senate.
According to the nonprofit tracker Bitcoin Laws, Kentucky became the 16th state to introduce legislation aimed at establishing a Bitcoin reserve joining Alabama, Texas, New Hampshire, Ohio, and others in exploring state-level Bitcoin adoption.
HB 487 is the first Florida bill of its kind to reach a public hearing, which makes Wednesday’s session a critical moment for Bitcoin policy in the Sunshine State.
A Pivotal Step for Bitcoin’s Institutional Legitimacy?
The Florida bill comes amid broader discussions about Bitcoin’s role in public finance. With geopolitical tensions and inflationary concerns rising, some states are beginning to view Bitcoin not just as a speculative asset, but as a potential long-term hedge or store of value.
Whether HB 487 advances further remains to be seen. But the upcoming hearing may offer a glimpse into how state governments are beginning to reimagine public fund management in the digital age.
