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FLORIDA - Florida is moving one step closer to becoming the first U.S. state to formally invest in Bitcoin, as lawmakers push forward a bill that would allow the state to hold the cryptocurrency as part of its financial reserves.
House Bill 487, also known as the Strategic Bitcoin Reserve bill, recently passed the state’s Insurance and Banking Subcommittee with unanimous approval, a rare show of bipartisan support in the evolving digital asset space.
The legislation authorizes Florida’s Chief Financial Officer and the State Board of Administration to allocate up to 10% of certain reserve funds into Bitcoin, citing its growing acceptance as a hedge against inflation by sovereign governments and major investment firms like BlackRock and Franklin Templeton.
The bill includes strict guidelines to ensure the security of state funds.
Bitcoin could be purchased directly or through regulated exchange-traded products, but only through approved custodians that meet state-defined security standards.
The legislation also emphasizes maintaining legal ownership and prohibits speculative or unsecured lending.
Representative Webster Barnaby, the bill’s sponsor, said the measure positions Florida as a national leader in financial innovation.
By embracing Bitcoin, the state aims to protect its reserves from the long-term effects of inflation and diversify its financial strategy.
The bill must still clear additional legislative hurdles before becoming law, but its early success signals growing momentum among policymakers to bring digital assets into the public finance arena.
If enacted, Florida would set a precedent for how U.S. states can incorporate decentralized assets into their fiscal planning.