Florida Bill Could Let State Invest Up to 10% of Public Funds in Bitcoin With Custody Safeguards

• Allows up to 10% allocation of specified state funds to Bitcoin and digital assets.

• Investment options include direct holdings, qualified custodians, or SEC-registered ETFs, with mandatory custody standards.

• Effective date set for July 1, 2026; CoinMarketCap reports Bitcoin trading at $107,370.02 (down 3.52% in 24h).

Florida Bitcoin Reserve bill: House Bill 183 allows up to 10% of select state funds in Bitcoin and digital assets. Read COINOTAG coverage for details and next steps.

By COINOTAG — Published: August 5, 2025 | Updated: August 20, 2025

What is the Florida Bitcoin Reserve bill?

Florida Bitcoin Reserve bill refers to House Bill 183, which proposes permitting the Chief Financial Officer and the State Board of Administration to invest up to 10% of designated public funds in Bitcoin and other digital assets. The bill defines digital assets broadly and mandates institutional-grade custody, compliance, and reporting measures.

How would Florida manage and custody Bitcoin investments?

House Bill 183 gives the CFO three management options: direct custody by the state, use of a qualified institutional custodian, or investment via an SEC-registered exchange-traded fund (ETF). The bill requires secure custody controls, audited procedures, and compliance with applicable fiduciary standards. These provisions are designed to align state practice with institutional asset-management norms.

Details of House Bill 183

House Bill 183 defines “digital assets” to include Bitcoin, tokenized securities, and non-fungible tokens (NFTs). The measure specifically authorizes allocations from the General Revenue Fund, the Budget Stabilization Fund, and designated trust funds. The CFO may place up to 10% of eligible funds into digital-asset exposures, subject to statutory safeguards and reporting obligations.

The bill also authorizes the State Board of Administration to allocate up to 10% of the Florida Retirement System’s Trust Fund into similar holdings, contingent on actuarial and fiduciary review. Investment routes authorized are direct holdings of digital assets, custody through a qualified third-party custodian, or purchases of SEC-registered ETFs that track digital-asset prices.

In addition to investment authority, the bill permits certain state taxes and fees to be paid in digital assets. All such payments would be converted into U.S. dollars prior to deposit in the general fund, minimizing operational disruption while providing a digital payment option for residents.

How will this help Florida?

The bill frames Bitcoin as a potential store of value and an inflation hedge, aligning state policy with federal developments such as the March 2025 White House executive order that established a national strategic approach to digital assets. By creating legal pathways and custody standards, Florida aims to broaden institutional access while maintaining fiduciary safeguards.

If enacted, the statute would take effect on July 1, 2026, providing a transition window for operational systems, custodial relationships, and reporting frameworks to be established. The measure positions Florida among U.S. jurisdictions exploring formal Bitcoin reserve policies, an approach also under discussion in other states and countries.

Other states and international context

Florida’s proposal follows earlier and ongoing efforts in several U.S. states. Some states have advanced similar frameworks, while others paused related bills earlier in the year. According to plain-text reporting from Bitcoin Laws, states such as Arizona, New Hampshire, and Texas have progressed digital-asset investment frameworks. Internationally, Brazil’s Chamber of Deputies was set to debate a national Bitcoin reserve measure on August 20, 2025, illustrating parallel interest at the national level.

Market context: CoinMarketCap reported Bitcoin trading at $107,370.02, down 3.52% over the past 24 hours at the time of reporting.

Frequently Asked Questions

Can Florida legally hold Bitcoin in state funds under House Bill 183?

Yes. House Bill 183 authorizes the CFO and the State Board of Administration to invest up to 10% of certain state funds in Bitcoin and other digital assets, subject to custody, compliance, and reporting requirements and contingent on adherence to fiduciary duties.

How would residents pay taxes with digital assets under the bill?

Residents would be allowed to use digital assets for certain taxes and fees. Payments would be converted into U.S. dollars automatically before deposit into the state’s general fund to preserve operational consistency and legal tender handling.

Key Takeaways

• Allocation cap: The bill permits up to 10% allocation of specified state funds to Bitcoin and digital assets.
• Custody and compliance: Investments must follow institutional custody options—direct state custody, qualified custodians, or SEC-registered ETFs—with mandated reporting.
• Implementation timeline: If passed, the law would take effect on July 1, 2026, allowing time to establish systems and safeguards.

Conclusion

House Bill 183, the proposed Florida Bitcoin Reserve bill, establishes a structured legal framework to permit limited state investment in Bitcoin and other digital assets while requiring institutional custody and compliance. The proposal aligns with federal guidance and international developments, and, if enacted, would take effect July 1, 2026. Stakeholders should monitor legislative progress and operational rulemaking for implementation details.

Author: COINOTAG — Sources referenced (plain text): White House executive order (March 2025), CoinMarketCap, Bitcoin Laws. No external links included.