Revised framework limits state crypto holdings to Bitcoin and removes pension fund exposure
Florida lawmakers are advancing a revised proposal that would allow the state to establish a strategic cryptocurrency reserve, significantly narrowing earlier ambitions. The updated framework focuses exclusively on Bitcoin and aims to reduce financial and political risk by distancing the initiative from public pension and retirement funds.
Senate Bill 1038 and Bitcoin-Only Criteria
Senate Bill SB 1038, filed in late December, proposes the creation of a Florida Strategic Cryptocurrency Reserve overseen by the state’s chief financial officer. While the bill does not explicitly name Bitcoin, it restricts eligible assets to those with an average market capitalization of at least $500 billion over the past two years. This threshold effectively limits the reserve to Bitcoin alone.
Under the proposal, the CFO would be authorized to purchase, hold, manage, and liquidate Bitcoin using standards similar to those applied to public trust assets.
Shift Away From Broader Crypto Exposure
The bill marks a clear departure from earlier House proposals that sought to allow investments across a wide range of digital assets, including NFTs and crypto securities. Those efforts faced resistance due to concerns over pension fund exposure and asset volatility. SB 1038 removes pensions entirely and establishes a standalone reserve structure.
The proposal depends on companion legislation to set up trust fund mechanics and must pass committee reviews. If enacted, the CFO would begin reporting on reserve holdings and performance in December 2026, positioning Florida alongside other states pursuing Bitcoin-focused reserve strategies.
Disclaimer
This content is for informational purposes only and does not constitute financial, investment, or legal advice. Cryptocurrency trading involves risk and may result in financial loss.