Florida lawmakers are considering a new bill that would authorize the state to invest a portion of its public funds, including its $218 billion pension system, into digital assets like Bitcoin. The proposed legislation, known as HB 183, sets a framework for holding cryptocurrency and related products, reviving a previous effort with more detailed operational rules.
Key Takeaways
- A new Florida bill, HB 183, would permit state funds to allocate up to 10% of their assets into digital currencies and related ETFs.
- The Florida Retirement System, with approximately $218 billion in assets, is among the funds that could participate.
- The bill provides a detailed blueprint for custody, control, and lending of digital assets, addressing concerns that stalled a similar proposal last year.
- While the bill authorizes investment, it does not mandate it; individual state fund boards would still need to approve their own policies.
A Renewed Push for State Crypto Investment
Florida is once again exploring the possibility of adding Bitcoin and other digital assets to its state balance sheet. The new proposal, HB 183, represents a more comprehensive and detailed attempt compared to a similar bill that failed last year.
Where the previous effort was seen as more aspirational, the current bill functions as a working blueprint. It outlines specific procedures for how the state would acquire, hold, and manage digital assets, aiming to satisfy the security and auditing requirements of public finance.
The legislation defines digital assets broadly. This includes not only direct holdings of cryptocurrencies like Bitcoin but also tokenized securities and exchange-traded products (ETPs) that track digital assets. This expanded definition allows for diversified exposure through regulated financial instruments like SEC-approved ETFs.
Background on the Proposal
This is Florida's second attempt to pass legislation of this nature. The 2025 version of the bill did not pass, largely due to unanswered questions about the practical and security challenges of a public entity holding cryptocurrency. HB 183 was drafted to directly address these concerns with specific rules for custody and risk management.
Understanding the Scope of HB 183
The bill designates Florida's Chief Financial Officer (CFO) as the primary authority for overseeing these potential investments. The CFO would be permitted to allocate up to 10% of each state fund account into approved digital assets.
This 10% ceiling is not a collective limit but applies to individual accounts. This structure significantly widens the potential investment pool, covering everything from the General Revenue fund to various trust and agency funds.
The same 10% cap would apply to the Florida Retirement System Trust Fund, which is managed by the State Board of Administration. It is important to note that these are ceilings, not quotas. The bill provides legal authorization but does not compel any state entity to invest.
Strict Rules for Custody and Control
A major focus of HB 183 is establishing clear and stringent rules for the custody of state-owned digital assets. This was a key weakness in the previous legislative attempt. The bill mandates that any digital asset purchased by the state must remain under its continuous control.
This control can be maintained directly by the CFO's office or through a qualified custodian that can legally secure the state's interest in the assets. If control is ever lost, the state has a five-business-day window to resolve the issue.
Operational Guardrails
The bill also includes provisions for lending and tax collection. Any loans of state-held digital assets must be fully collateralized, and the CFO can require overcollateralization. Additionally, if taxes or fees are paid to the state in cryptocurrency, they must be immediately converted to U.S. dollars and deposited into the General Revenue fund.
These operational details are designed to create a secure framework that can withstand the scrutiny of public auditors. They address practical questions about how a government treasury would manage the unique risks associated with private keys and blockchain transactions.
The Potential Financial Impact
The scale of the funds involved makes this bill particularly significant. The Florida Retirement System currently holds approximately $218 billion in assets. Even a small allocation could represent a substantial influx of capital into the digital asset market.
A conservative 1% allocation from the pension fund alone would amount to roughly $2.2 billion. To put this in perspective, this figure exceeds the typical daily net inflow for all U.S. spot Bitcoin ETFs combined. A 5% allocation would be nearly $11 billion.
- 1% Allocation: $2.2 billion
- 5% Allocation: $10.9 billion
- 10% Allocation: $21.8 billion
Other state funds, such as the $4.9 billion Budget Stabilization Fund, could contribute hundreds of millions more. While any investment would likely start small and grow cautiously, the legal authorization would establish a potentially large and consistent new source of demand for Bitcoin and other digital assets.
Hurdles and Long-Term Implications
Despite the detailed framework, significant legal and political challenges remain. Public funds are traditionally managed with a focus on stability, liquidity, and predictability—qualities not typically associated with Bitcoin's volatility.
The bill attempts to mitigate some risks, but questions about fiduciary duty and market volatility will be central to any debate. Auditors and financial regulators will demand rigorous proof that the state can value, secure, and account for these holdings as reliably as it does for traditional assets like stocks and bonds.
Furthermore, even if HB 183 passes, it is only the first step. Each state investment board would still need to formally amend its own investment policy statements before any funds could be allocated to crypto.
Ultimately, HB 183 is not a declaration that Florida will buy Bitcoin, but rather an attempt to create a legal and operational playbook for doing so. If the framework proves successful and withstands scrutiny, it could become a pioneering model for other states in the U.S., potentially marking a quiet but profound shift in how governments view and hold digital assets.
