Florida’s ambitious plans to establish a Bitcoin reserve have hit a roadblock as lawmakers shelve two key Bitcoin reserve bills aimed at allowing state investments in cryptocurrency. The move deals a blow to growing efforts across U.S. states to diversify treasury holdings with digital assets.
Florida’s Bitcoin reserve bills withdrawn
Florida’s House Bill 487 and Senate Bill 550, which sought to enable state investments in Bitcoin, have been “indefinitely postponed and withdrawn from consideration,” according to a May 3 update from the Florida Senate. The decision comes after the state’s legislative session adjourned on May 2 without passing the Bitcoin reserve bills.
HB 487 would have permitted Florida’s State Board of Administration to allocate up to 10% of certain state funds into Bitcoin, while SB 550 aimed to allow public fund investments in cryptocurrency. The failure of these proposals means Florida joins several other states that have seen similar Bitcoin reserve initiatives stall in recent months.
Arizona now leads the race for state Bitcoin reserves
With Florida’s Bitcoin reserve bills off the table, Arizona has emerged as the frontrunner in the push for state-level Bitcoin reserve adoption. The state recently saw its own proposal, House Bill 1025, vetoed by Governor Katie Hobbs, who called Bitcoin an “untested investment.” However, two more Bitcoin reserve bills—HB 2749 and SB 1373—remain in play.
HB 2749 proposes a budget-neutral approach, using profits from Arizona’s unclaimed property fund to establish a Bitcoin reserve. Meanwhile, SB 1373 would authorize the state treasurer to invest up to 10% of state funds in digital assets. Dennis Porter, founder of the Satoshi Action Fund, believes Arizona still has a strong chance to become the first state to pass such legislation.
Why states are pushing for Bitcoin reserves
The concept of a state Bitcoin reserve has gained traction as lawmakers explore ways to hedge against inflation and diversify government portfolios. Proponents argue that allocating a small percentage of state funds to Bitcoin could provide long-term growth opportunities while mitigating risks associated with traditional assets.
Florida’s failed attempt highlights the challenges of passing such legislation, as skepticism around cryptocurrency remains among some policymakers. Critics, including Arizona’s governor, have raised concerns about volatility and regulatory uncertainty. However, advocates like entrepreneur Anthony Pompliano argue that dismissing Bitcoin outright reflects “ignorance” of its potential benefits.
The broader trend of state bitcoin adoption
Despite Florida’s setback, the movement for state Bitcoin reserves continues. According to Bitcoin Laws, several other states—including Wyoming, South Dakota, North Dakota, Pennsylvania, Montana, and Oklahoma—have seen similar Bitcoin reserve bills fail this year. However, the trend suggests growing interest in cryptocurrency as a strategic asset for state treasuries.
If Arizona succeeds in passing its remaining Bitcoin reserve bills, it could set a precedent for other states to follow. The debate over Bitcoin reserves is far from over, and as more states explore the idea, the coming months could see renewed legislative efforts across the U.S.
What’s next for Florida’s crypto ambitions?
Florida’s withdrawal of its Bitcoin reserve bills doesn’t necessarily mean the end of crypto-friendly policies in the state. Known for its pro-Bitcoin stance under Governor Ron DeSantis, Florida may revisit the concept in future sessions. For now, however, the focus shifts to Arizona and whether it can break new ground in state-level Bitcoin adoption.
As the race for the first U.S. state Bitcoin reserve continues, one thing is clear: cryptocurrency is becoming an increasingly prominent topic in legislative discussions. Whether through Florida, Arizona, or another state, the idea of governments holding Bitcoin as a reserve asset is gaining momentum, and the next chapter in this story could be just around the corner.
The Bit Gazette brings you updates and analysis on Arizona’s Bitcoin reserve bills as they unfold. Follow to never miss any detail from the crypto and blockchain scene.
