Florida Moves to Create Bitcoin Reserve With 10% Public Fund Cap

• Florida bills propose a Strategic Bitcoin Reserve for up to 10% of certain state funds.
• Qualified assets are Bitcoin, ETFs SEC-registrated, and securities tokenized.
• Florida is part of a mounting number of U.S. jurisdictions that are considering Bitcoin reserves.

One of the most visible advancements in the use of Bitcoin in public finances has been in the state of Florida, as a bill to establish a Strategic Bitcoin Reserve has been tabled by the legislative body, which would look to invest a potential 10% of its strategic assets in the cryptocurrency in the future.

This is offered through two bills, HB 183 and SB 1038, which have been introduced in advance of the 2026 session of the state government. These provide a roadmap regarding how it is possible to allow investment in Bitcoin and any derivative of it in Florida in a carefully managed manner.

Florida narrows scope to Bitcoin-focused assets

In contrast to previous plans proposed in 2025, it is clear from the proposed bills introduced now that a substantially smaller list of digital assets is in focus. Instead, it is focusing on Bitcoin, United States Securities and Exchange Commission-registered exchange-traded funds, and tokenized securities.

The measures would let Florida’s Chief Financial Officer and the State Board of Administration invest up to 10% of certain public funds in those assets. Eligible funds would include the General Revenue Fund, the Budget Stabilization Fund, and the Florida Retirement System Trust Fund, which manages state employees’ pension assets.

Legislators see this measure more as a means of portfolio diversification than a potentially risky bet. The two bills have maximum exposure at 10%, setting limits to the assets considered for this end.

Custody rules and tax payment provisions

The legislation sets clear custody requirements. Florida would hold digital assets directly through the Chief Financial Officer, via a qualified licensed custodian, or through regulated investment vehicles such as ETFs. This structure mirrors institutional standards used by pension funds and sovereign investors.

In addition, the bills allow Florida residents to pay certain state taxes and fees using digital assets. However, the state would immediately exchange any cryptocurrency received into U.S. dollars, thereby eliminating the risk of prices for tax revenues.

Once approved, the proposed mechanisms would come into effect from July 1, 2026, to allow state entities to devise frameworks for custody, compliance, and risk management.

Support from state leadership

The Florida Chief Financial Officer, Jimmy Patronis, has announced his support for the measure. Patronis has branded Bitcoin a “digital gold,” hoping that controlled investment in the cryptocurrency will help diversify state-held funds.

Advocates also highlighted a presidential order from March 2025 that established a national Strategic Bitcoin Reserve via forfeited assets in the US. They say that this has spurred states to look at their own methods for digital asset reserves.

Part of a growing state-level trend

Florida is now the fourth state to adopt Bitcoin reserve laws similar to those of Arizona, Texas, and New Hampshire, which adopted similar laws in 2025. All this presents a clear trend of how states are viewing Bitcoin within public finances.

Although concerned about volatility and custody risks, critics say that the capped allocation mechanism and ETF exposure offset these challenges. They are further encouraged by the development of Bitcoin as a mature institutional asset due to the adoption by individual states.

Meanwhile, in Florida in 2026, what happens in relation to the passing of bills will have implications for other states contemplating similar bills. Florida will then become one of the biggest public entities in America to integrate bitcoin within its treasury system.

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