Webster Barnaby Files Revised Bill That May Let Florida Invest Up to 10% in Bitcoin and Crypto With New Custody Standards

  • HB 183 would permit up to 10% of certain public funds to be invested in digital assets, effective July 1, 2026.

  • New provisions expand eligible assets beyond Bitcoin to crypto ETFs, securities, NFTs and other blockchain-based products with added custody and audit requirements.

  • Similar state measures passed only in Arizona, New Hampshire and Texas in 2025; New Hampshire’s law limits exposure to 5% for assets with market caps above $500 billion.

Florida HB 183: lets state funds invest up to 10% in digital assets including Bitcoin and crypto ETFs, adds custody and audit rules — read the bill overview.

Florida House Rep. Webster Barnaby filed a new crypto reserve bill after the first one failed, but this time it isn’t a Bitcoin-only bill, and stricter compliance measures have been added.

A Florida House Republican has introduced a revised proposal to permit the state and defined public entities to invest in a broader set of digital assets after an earlier, Bitcoin-only attempt was withdrawn by the operations subcommittee in June. The new measure aims to provide clearer **custody**, documentation and **fiduciary** standards compared with the prior draft.

The Florida House Bill 183 would authorize the State Board of Administration to allocate up to **10%** of eligible pension and trust funds to digital assets including Bitcoin (BTC), crypto exchange-traded products, crypto securities, non-fungible tokens and other blockchain-based products, according to the bill text filed by Representative Webster Barnaby on Wednesday.

Unlike the earlier HB 487, which stalled in June, HB 183 expands the permitted asset set beyond a Bitcoin-only framework and adds specific requirements for custodial arrangements, loan documentation and fiduciary disclosures to reduce operational and compliance risks for public fund managers.

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Source: Bitcoin Laws

The bill is drafted to take effect on July 1, 2026, and explicitly authorizes the State Board of Administration to invest pension and other trust funds in digital assets within the stated allocation limit. It also requires enhanced recordkeeping and third-party custody arrangements to help ensure assets are held and reported in accordance with public fiduciary duties.

What is Florida HB 183?

Florida HB 183 is proposed state legislation that would allow certain public entities, including the State Board of Administration, to invest up to 10% of eligible pension and trust funds in a range of digital assets, including Bitcoin, crypto ETFs, crypto securities and NFTs, with enhanced custody and audit requirements to safeguard holdings.

How does HB 183 differ from earlier reserve bills?

HB 183 broadens investible assets beyond the Bitcoin-only approach of prior attempts and introduces detailed custody, documentation and fiduciary standards. The bill tightens controls by requiring qualified custodians, documented lending contracts and regular audits, aiming to address criticisms that earlier drafts lacked operational safeguards. The effect date is set for July 1, 2026.

Only three state Bitcoin reserve bills have been enacted

During the 2025 legislative session, multiple states introduced reserve and digital asset investment bills, but only three became law: Arizona, New Hampshire and Texas. New Hampshire’s HB 302 authorizes treasurers to invest up to 5% of public funds in digital assets with market capitalizations above $500 billion (currently only Bitcoin). Texas’ Senate Bill 21 establishes a Bitcoin-only reserve, while Arizona’s HB 2749 permits creation of a digital asset reserve sourced from unclaimed property.

Florida lawmaker filed another crypto bill this week

Representative Webster Barnaby also filed HB 175 to create clearer regulatory treatment for recognized payment stablecoin issuers in Florida. That measure would clarify that fully collateralized payment stablecoins, backed by U.S. dollars or U.S. Treasuries and subject to monthly public audits of reserve holdings, should not require additional state licensing or registration beyond federal or recognized standards. Barnaby’s stablecoin and reserve bills both target a July 1, 2026 effective date.

Related policy activity: Bank of England communications on stablecoin limits were described publicly as temporary in recent commentary by the Bank of England (plain text reference).

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Source: Webster Barnaby

California acknowledges crypto property rights

Separately, California enacted SB 822 to protect unclaimed crypto assets from being converted to cash before transfer to the state, allowing owners to recover original digital assets by filing a valid claim with the California State Controller. This change recognizes crypto as property preserved in its native form under new state custody rules.

Frequently Asked Questions

Can Florida public pensions invest in crypto under HB 183?

Yes. Under HB 183, the State Board of Administration and certain public entities could allocate up to 10% of eligible pension and trust funds to qualifying digital assets, subject to custody, documentation and fiduciary safeguards specified in the bill. The measure targets an effective date of July 1, 2026.

What safeguards does HB 183 include to protect public funds?

HB 183 introduces custody requirements with qualified custodians, mandatory documentation for lending and custody arrangements, and enhanced fiduciary disclosure obligations, plus regular reporting and audit provisions to improve transparency and operational risk management.

Key Takeaways

  • Scope expansion: HB 183 expands permitted assets from Bitcoin-only to a broader set including ETFs, securities and NFTs.
  • Risk controls: The bill adds specified custody, documentation and fiduciary standards to mitigate operational and compliance risks.
  • Implementation timeline: Both HB 183 and a related stablecoin bill target a July 1, 2026 effective date; public fund allocations would be capped at 10%.

Conclusion

Florida HB 183 represents a notable shift toward broader state-level allowance for digital asset allocations by moving beyond a Bitcoin-only framework and embedding stricter custody, audit and fiduciary controls. If enacted, it would join an evolving patchwork of state laws — including New Hampshire HB 302, Texas Senate Bill 21 and Arizona HB 2749 — that define how public entities can approach crypto exposure. Monitor legislative progress and official bill texts from the Florida Legislature for updates; this article was prepared by COINOTAG. Published: 2025-10-17 | Updated: 2025-10-17.

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