Florida lawmakers are advancing a new legislative proposal designed to establish a strategic cryptocurrency…

Lede

Florida lawmakers are advancing a new legislative proposal designed to establish a strategic cryptocurrency reserve for the state. Senate Bill (SB) 1038, sponsored by Republican Senator Joe Gruters, was officially filed on Dec. 30 and represents a focused effort to integrate digital assets into the state’s financial framework. Following its introduction, the bill was referred to the Appropriations Committee on Agriculture, Environment, and General Government on Wednesday. This committee referral marks a critical step in the legislative process, as the bill must successfully clear hearings and subsequent votes before it can be considered on the Senate floor.

The proposed legislation seeks to create the Florida Strategic Cryptocurrency Reserve, an entity that would be placed under the direct management of the state’s chief financial officer (CFO). Under this framework, the CFO would be granted the authority to purchase, hold, manage, and liquidate specific digital assets. To ensure fiscal stability, the bill includes strict eligibility requirements for any potential acquisitions. Specifically, the reserve is restricted to purchasing cryptocurrencies that have maintained an average market capitalization of at least $500 billion over the previous two years. Currently, Bitcoin is the only digital asset that meets this specific financial threshold, effectively narrowing the reserve’s focus to a single asset class.

Context

The introduction of SB 1038 follows several earlier attempts by Florida legislators to authorize state-level investments in digital assets. On Oct. 17, 2025, Republican Party Representative Webster Barnaby filed House Bill (HB) 183, which proposed allowing the state and various public entities to invest as much as 10% of their available funds into a wide array of digital assets. This earlier proposal was significantly broader in scope, encompassing not only Bitcoin but also cryptocurrency exchange-traded products, digital securities, non-fungible tokens (NFTs), and other blockchain-based products. HB 183 itself was a revised version of a previous measure, HB 487, which had been withdrawn in June after failing to progress through a legislative subcommittee.

While previous versions of the legislation sought to include a diverse range of digital products and involve various public funds, SB 1038 introduces significant changes to address past legislative concerns. One of the most notable differences in the current Senate bill is the complete removal of pension and retirement funds from the investment pool. By excluding these sensitive funds and narrowing the asset eligibility to high-market-cap cryptocurrencies, proponents aim to create a more conservative and targeted framework than the 10% broad-market allocation originally suggested in the revised HB 183.

Impact

The implementation of SB 1038 would centralize the state’s cryptocurrency operations under a standalone reserve structure. Oversight for this new entity would be placed directly under the office of the Chief Financial Officer (CFO), who would be responsible for the strategic management of the holdings. This structure is intended to provide a formal legal basis for the state to interact with digital asset markets, granting the CFO the specific power to manage and liquidate assets as necessary. By establishing a dedicated Florida Strategic Cryptocurrency Reserve, the state would create a specific mechanism for the acquisition of assets, separate from other state financial operations and public retirement systems.

The impact of the bill is further defined by its restrictive purchase criteria. The requirement for a $500 billion average market capitalization over a two-year period serves as a significant filter for asset selection. Because only Bitcoin currently satisfies this requirement, the bill effectively mandates a Bitcoin-centric reserve strategy. This approach removes the potential for the state to invest in more volatile or smaller-cap digital assets, focusing instead on the most established market participant. This centralized management and narrow asset scope represent a shift toward a more institutionalized and controlled state investment strategy in the digital asset space.

Outlook

The future of the Florida Strategic Cryptocurrency Reserve depends on a coordinated legislative effort during the upcoming session. SB 1038 is not a standalone piece of legislation; its activation is strictly contingent upon the passage of companion legislation that establishes the necessary trust-fund mechanics for the reserve. These mechanics are essential for defining how the funds are held and accounted for within the state’s financial system. Without these additional legal structures to manage the underlying finances, the reserve cannot be formally established or funded.

A House companion measure, HB 1039, has already been filed, signaling that there is coordinated backing for this initiative across both chambers of the Florida legislature. For the proposal to move forward, it must successfully navigate the committee process and gain approval from lawmakers. The alignment between the Senate and House through companion bills suggests a unified strategy to address previous legislative hurdles. If enacted, these bills would provide the foundational trust-fund framework required for the CFO to begin managing state cryptocurrency holdings. The progression of these measures will determine whether Florida joins other states in enacting narrowly defined frameworks for digital asset reserves.