Florida Senator Pushes Bitcoin Investment Bill

Florida Republican Senator Joe Gruters has introduced a bill advocating for state investment in Bitcoin (BTC) and digital assets, aiming to protect against inflation.

Filed on February 7, the proposal follows a growing trend of U.S. states exploring Bitcoin adoption as part of their financial strategy.

“The state should have access to tools such as Bitcoin to protect against inflation,” Gruters stated in the bill submitted to the Florida Senate.

Bitcoin as a Hedge Against Inflation

Gruters emphasized that inflation has eroded the purchasing power of assets managed by Florida’s chief financial officer (CFO), necessitating alternative investment strategies.

He pointed to the growing institutional adoption of Bitcoin, highlighting that BlackRock, Fidelity, and Franklin Templeton have already recognized BTC as a store of value and hedge against inflation.

“Bitcoin has greatly risen in value and is becoming more widely accepted as an international medium of exchange,” Gruters added.

Florida’s Proposed Bitcoin Allocation

The bill would grant Florida’s CFO, Jimmy Patronis, the authority to invest state funds in Bitcoin, including:

• The general reserve fund
• The budget stabilization fund
• Various agency trust funds

However, Bitcoin holdings in any account would be capped at 10%—a higher limit than Wyoming’s recent proposal, which restricts BTC allocations to 3%.

The proposal builds upon Patronis’ previous efforts to integrate Bitcoin into Florida’s investment strategy.

In October 2023, Patronis urged the Florida State Board of Administration to consider adding Bitcoin to state retirement fund investments, calling it “digital gold” and a potential hedge against volatility in traditional markets.

Growing Momentum for State Bitcoin Reserves

Florida’s proposal aligns with a nationwide shift toward state-backed Bitcoin reserves.

Just one day before Gruters’ filing, Kentucky became the 16th U.S. state to introduce similar legislation.

• Kentucky’s bill (KY HB376), filed on February 6, proposes allowing the State Investment Commission to allocate up to 10% of excess state reserves into Bitcoin and digital assets.

With more states recognizing Bitcoin’s potential, Florida’s proposed investment strategy could further legitimize Bitcoin as a financial asset at the state level.

What’s Next?

If passed, Florida could become a leader in Bitcoin adoption, setting a precedent for other state governments to diversify their financial holdings with digital assets.

As Bitcoin’s institutional adoption grows, political momentum behind state-led crypto investments appears to be accelerating—signaling a major shift in U.S. financial policy.