Florida lawmakers introduced a bill on January 7 that would allow the state to hold Bitcoin (BTC) through a newly established Strategic Cryptocurrency Reserve Fund.
JUST IN: Florida introduces a bill to create a Strategic #Bitcoin Reserve, allowing up to 10% of key public funds to hold BTC and ETFs. pic.twitter.com/BG3BIATyNM
— Bitcoin Magazine (@BitcoinMagazine) January 8, 2026
The proposal, known as House Bill 1039 (HB1039), calls for the creation of a special fund outside the state treasury. The structure is designed to keep digital asset holdings separate from public pension funds and retirement accounts, reducing direct exposure of core public funds to crypto market volatility.
This approach differs sharply from proposals debated in 2025 that suggested allocating portions of pension funds to cryptocurrencies. Instead, the new framework aims to provide exposure to digital assets while limiting systemic financial risk.
Under the bill, eligible digital assets must have maintained an average market capitalization of at least $500 billion over the past 24 months. At present, Bitcoin is the only cryptocurrency that meets this requirement, effectively making the reserve a Bitcoin-only fund.
If approved, the legislation could take effect on July 1, 2026, formally establishing one of the most structured Bitcoin reserve frameworks at the state level in the United States.
Strict Oversight and Strategic Rationale
The bill grants Florida’s Chief Financial Officer (CFO) discretionary authority to invest public funds into qualifying digital assets. However, it also introduces strict safeguards, including mandatory independent audits and oversight by a newly formed Florida Strategic Cryptocurrency Reserve Advisory Committee.
To address concerns raised by earlier proposals, the bill does not mandate a minimum allocation to Bitcoin, allowing flexibility in how and when funds are deployed.
The framework may also serve as groundwork for future expansion. If other major cryptocurrencies, such as Ethereum (ETH), eventually meet the market capitalization threshold, they could become eligible under the same rules.
Florida CFO Jimmy Patronis has repeatedly described Bitcoin as “digital gold,” arguing that it can act as a hedge against inflation and currency debasement. The bill reflects growing support among Republican lawmakers who view Bitcoin not as a speculative asset, but as a potential long-term reserve asset.
The proposal also aligns with Governor Ron DeSantis’ broader stance on decentralized finance. In 2023, DeSantis signed legislation prohibiting central bank digital currencies (CBDCs) from being recognized as legal tender under Florida law, reinforcing the state’s skepticism toward centralized monetary control.
Growing Momentum for Crypto Adoption at the State Level
Florida’s initiative comes amid increasing experimentation with cryptocurrency at the state level across the U.S.
New Hampshire became the first state to allow up to 5% of public funds to be invested in cryptocurrencies, while Texas approved limited purchases of Bitcoin ETFs in late 2025.
If Florida’s bill passes, the state would become one of the largest jurisdictions to formally pilot cryptocurrency as a strategic reserve asset.
Critics continue to warn that Bitcoin’s price volatility makes it unsuitable for public funds. Supporters counter that a tightly regulated reserve fund offers controlled exposure to a new asset class without jeopardizing essential public finances.
The bill will now move through committee reviews before being debated in a full legislative vote.
