Florida is moving to integrate bitcoin into its financial strategy, with a new bill proposing the state invest public funds in cryptocurrency as a hedge against inflation.
Florida Explores Bitcoin Adoption for State Reserves
Florida State Senator Joe Gruters filed a bill on Friday that would allow the state’s chief financial officer to invest public funds in bitcoin. The legislation, known as SB 550, seeks to incorporate the 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.
By introducing bitcoin into the state’s investment portfolio, supporters argue Florida could better safeguard its financial reserves from economic volatility.
The bill outlines three ways the state can hold BTC: directly through a secure custody solution, with a qualified custodian, or as an exchange-traded product approved by the U.S. Securities and Exchange Commission (SEC). Additionally, it allows the CFO to loan bitcoin holdings under certain conditions to generate additional returns, provided the loans do not expose the state to increased financial risk.
SB 550 establishes clear guidelines for these investments, placing a cap on how much of the state’s funds can be allocated to bitcoin. It specifies:
The amount of public funds that the chief financial officer may invest in bitcoin may not exceed 10 percent of the total funds in any account.
If enacted, the legislation would allow Florida to accept taxes and fees in bitcoin, with payments converted to U.S. dollars and deposited into the General Revenue Fund, which the government uses for ongoing expenses. SB 550 amends multiple sections of Florida law to align with this policy, including investment rules for public and pension funds.
