- Florida proposes a bill to invest state funds in Bitcoin, capped at 10%.
- Bitcoin continues to gain adoption from institutional giants and the State government.
Florida Senator Joe Gruters has proposed a bill advocating Bitcoin as part of the state’s investment strategy. If the bill succeeds, it would allow the state to allocate up to 10% of its public funds into Bitcoin.
Florida joins U.S. states like Texas, Wyoming, Ohio, Pennsylvania, and others in the race to adopt Bitcoin as the state’s financial reserve.
Bitcoin is increasingly seen as a cryptocurrency with a potential hedge against inflation and a tool for financial diversification.
Sen. Gruters proposed that the digital asset could protect against inflation and stabilize the state’s financial position.
“The state should have access to tools such as Bitcoin to protect against inflation,” Gruters said when introducing the bill on February 7.
Following similar moves in other U.S. states, Florida joins the list of states considering Bitcoin investments. Just a day earlier, Kutucky introduced a similar proposal, which makes it the 16th state to explore Bitcoin as a reset.
Florida already made a huge investment in digital assets. State CFO Jimmy Patronis revealed that Florida holds around $800 million in digital assets investment. Jimmy also pushed for Bitcoin to be considered as a part of Florida’s financial strategy.
“Bitcoin is often called ‘digital gold.’ It could help diversify the state’s portfolio and act as a hedge against economic uncertainty,” Patronis wrote in a letter to Florida’s investment board.
The bill proposed that investment in Bitcoin should be made through various funds, which include General Revenue Funds, Agency Trust Funds, and Budget Stabilization funds. Although the bill limits Bitcoin exposure to 10% of any account, this percentage is higher than Wyoming’s recent proposal, which caps investments in Bitcoin at 3%.
Florida’s crypto-friendly stance could gain momentum under the current administration. Donald Trump, who recently returned to office, has previously hinted at supporting Bitcoin adoption at a federal level and ultimately leading the bullish season for cryptocurrency.
The introduction of this bill is a fact of how Bitcoin gradually gained massive adoption, as institutional giants like Fidelity, BlackRock, and Franklin Templeton have incorporated Bitcoin into their different portfolios. The bill aligns with this trend and emphasizes the reality that Bitcoin is more than a speculative asset.
One key aspect of the bill is its exemption of Bitcoin investments from certain securities regulations. If passed, it would grant the State Board of Administration authority to manage and reinvest Bitcoin holdings. This could open the door for broader adoption in other states.
There are arguments about Bitcoin being a government asset and it’s likely because of the recent adoption rate by the government. If Florida succeeds with this bill, it will be a model for remaining states aiming to integrate Bitcoin into the financial portfolio.
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