KEYTAKEAWAYS
- Florida’s SB 1038 signals a policy shift from broad crypto investment toward a tightly controlled, Bitcoin-only strategic reserve.
- Strict market-cap thresholds effectively limit eligibility to Bitcoin, balancing political feasibility with risk management.
- The bill excludes pension funds and centralizes oversight under the CFO, emphasizing transparency and governance discipline.
CONTENT
Florida lawmakers are advancing a narrower, Bitcoin-focused reserve bill, shifting from broad crypto exposure toward a more cautious framework emphasizing risk control and centralized oversight.
Florida’s legislative stance on cryptocurrency policy is undergoing a notable shift. After earlier efforts to broadly open state funds to crypto investments stalled, lawmakers have returned with a more cautious, Bitcoin-focused proposal. The new approach aims to establish a strategically meaningful digital asset reserve for the state while keeping financial risk tightly controlled.
According to legislative records, **Florida State Senator Joe Gruters, a Republican, formally introduced Senate Bill 1038 (SB 1038) on December 30, 2025. The bill is scheduled to be referred this week to the Senate Committee on Agriculture, Environment, and General Government Appropriations. It must pass committee hearings and votes before advancing to the full Senate.
SB 1038 ESTABLISHES A STATE-LEVEL STRATEGIC CRYPTO RESERVE
The core of SB 1038 is the authorization of a “Florida Strategic Cryptocurrency Reserve,” to be fully managed by the state’s Chief Financial Officer (CFO). Under the bill, the CFO would oversee the purchase, custody, management, and—if necessary—liquidation of crypto assets, following standards comparable to those used for public trust assets. By centralizing authority within a single executive office, lawmakers seek to ensure regulatory consistency and reduce operational and governance risk.
BITCOIN NOT NAMED, BUT EFFECTIVELY THE ONLY ELIGIBLE ASSET
While SB 1038 does not explicitly name Bitcoin, it imposes an exceptionally high eligibility threshold: only cryptocurrencies with an average market capitalization of at least $500 billion over the past two years may qualify. Under current market conditions, Bitcoin is the sole asset that meets this requirement, making the reserve Bitcoin-only in practice. This design is widely viewed as a compromise between political feasibility and risk containment.
WHY THE EARLIER BROAD INVESTMENT PROPOSAL FAILED
The narrower Senate proposal follows the collapse of a much more expansive effort in 2025. In October of that year, Republican State Representative Webster Barnaby introduced House Bill 183 (HB 183), which would have allowed the state and certain public entities to allocate up to 10% of funds into a wide range of crypto-related assets, including Bitcoin, crypto exchange-traded products, crypto securities, NFTs, and other blockchain-based instruments. Due to concerns over excessive volatility and potential exposure of pension and public trust funds, the bill was ultimately withdrawn during the legislative process.
EXCLUDING PENSION FUNDS AND CENTRALIZING OVERSIGHT
In contrast, SB 1038 explicitly excludes pensions and retirement funds. By creating a separate reserve structure and assigning oversight directly to the CFO, the bill avoids entangling existing public trust systems and reduces uncertainty arising from multi-agency governance. This approach mirrors recent Bitcoin reserve legislation adopted in states such as New Hampshire and Texas, which similarly rely on high market-cap thresholds and single-asset focus to address risk concerns.
LEGISLATIVE PATH AND ONGOING OVERSIGHT
For SB 1038 to take effect, companion legislation must establish the necessary trust fund framework. The corresponding House bill, HB 1039, has already been introduced, signaling preliminary alignment between the Senate and House. If enacted, the CFO would be required—starting in December 2026—to submit regular reports to legislative leaders detailing reserve holdings, valuation changes, and management practices, ensuring transparency and public accountability.
Overall, Florida’s decision to narrow the scope of its crypto reserve proposal and center it on Bitcoin reflects a more cautious and pragmatic recalibration of state-level crypto policy.
