TALLAHASSEE, Florida – Florida lawmakers are considering legislation to authorize the state’s Chief Financial Officer (CFO) to invest public funds in Bitcoin. House Bill 487, introduced by Representative Webster Barnaby, and Senate Bill 550, introduced by Senator Joe Gruters, propose allowing the CFO to allocate up to 10% of certain public funds—including the General Revenue Fund, Budget Stabilization Fund, and various trust funds—into Bitcoin.
The proposed bills outline specific guidelines for these investments:
Investment Cap: Bitcoin holdings would be limited to no more than 10% of any given fund’s total balance.
Custody Requirements: The CFO must ensure that any acquired Bitcoin is securely held, either directly, through a qualified custodian, or as part of an exchange-traded product.
Loan Provisions: After establishing appropriate rules, the CFO and other authorized parties may loan the Bitcoin held in state funds to generate additional returns, provided such actions do not pose increased financial risk.
Tax and Fee Payments: Taxes and fees paid in Bitcoin would be transferred to the General Revenue Fund, which would then reimburse the designated funds in U.S. currency.
Additionally, the legislation grants the State Board of Administration the authority to invest a similar percentage of pension fund assets in Bitcoin.
The rationale behind these proposals is to provide the state with tools to protect against inflation, as Bitcoin is increasingly viewed by some investment advisors and sovereign nations as a hedge against inflation.
If enacted, these bills would position Florida among a growing number of U.S. states exploring the integration of Bitcoin into public fund investments.
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