Florida Relaunches Bitcoin Reserve Effort: Second Time's A Charm?
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Florida is again considering adding Bitcoin and other cryptocurrencies to its balance sheet.
House Bill 183, introduced by state Rep. Webster Barnaby last week, would allow the state’s chief financial officer to invest up to 10% of public funds, including the general revenue fund and the budget stabilization fund, in digital assets, from Bitcoin to non-fungible tokens.
The bill, if passed, would also allow the State Board of Administration, which primarily manages the Florida Retirement System’s Trust Fund, to allocate 10% of its holdings to digital assets. The Florida Retirement System Pension Plan held nearly $219 billion as of Sept. 30.
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The bill would also allow Florida’s chief financial officer and other authorized officials to lend digital assets from state funds to generate additional yield, provided they are fully or over-collateralized and meet other fiduciary requirements.
The bill says that Bitcoin and other digital assets could help Florida preserve value lost to inflation, citing their price surge. Bitcoin, for example, was most recently trading near $109,000, up over 10% year-to-date.
The bill also cited Bitcoin’s growing institutional acceptance, including from BlackRock (NYSE:BLK), Fidelity and Franklin Templeton, as well as President Donald Trump‘s establishment of a national Bitcoin strategic reserve.
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HB 183 is Florida’s second attempt at establishing a Bitcoin strategic reserve. Lawmakers filed strategic Bitcoin reserve bills in the state House and Senate in February. However, both bills failed to pass the committee stage before the end of the legislative session and were withdrawn.
“Most of the failed bills you see are because the state legislatures adjourned for the session,” Julian Fahrer, founder of Bitcoin Laws, a website tracking Bitcoin legislation in the U.S., told cryptocurrency news outlet The Block, expressing confidence that HB 183 could succeed where predecessors failed.
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According to Bitcoin Laws, 45 Bitcoin reserve bills have been filed by 27 states over the past few months. However, only three bills have been enacted. Thirty-three have failed and eight are in committee. The states that have enacted Bitcoin reserve laws include Arizona, New Hampshire and Texas.
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