In brief

• A newly proposed bill in Florida would enact the creation of a strategic Bitcoin reserve, if passed.
• HB 1039 differs from previous attempts and would exist outside the state treasury with management from its CFO.
• Only three states thus far have passed legislation for crypto reserves, though at least 17 have pending legislation according to Bitcoin Reserve Monitor.

Less than a year after Florida’s attempts at a state Bitcoin reserve faded, a new bill in the state seeks once more to establish a strategic crypto reserve. 

Filed on Tuesday, HB 1039 from Rep. John Snyder follows two withdrawn attempts—HB 487 and SB 550—that sought to allocate up to 10% of the state’s funds into Bitcoin last year. 

Unlike those bills, Snyder’s would see the creation of the fund exist outside the state treasury, with management placed in the hands of the state’s chief financial officer.

“The Florida Strategic Cryptocurrency Reserve is established as a special fund outside the State Treasury. The Chief Financial Officer has custody of and shall administer and manage the reserve,” the bill text reads. 

“To administer and manage the reserve, the Chief Financial Officer may acquire, exchange, sell, supervise, manage, or retain any kind of investments that a prudent investor exercising reasonable care, skill, and caution would,” it continues.

While the text does not name Bitcoin as the cryptocurrency of choice for the proposed fund, the top crypto asset by market cap is the only asset that meets the bill’s market cap criteria. The bill requires that an asset maintain a market cap of at least $500 billion over the most recent two-year period. 

Bitcoin maintains a market cap of more than $1.8 trillion at its current prices. The next-largest asset, Ethereum, has a market cap of about $377 billion.

While many states floated legislation to create Bitcoin or crypto reserves last year, only New Hampshire, Arizona, and Texas ultimately passed legislation to create reserves. At least five rejected bills and numerous others maintain pending legislation, according to data from BitcoinReserveMonitor.com. 

Why does Florida want to join the fray? According to the bill, the creation of a reserve would enhance the state’s financial resilience, serve as a hedge against economic inflation and volatility, and provide enhanced financial security to Florida residents.