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North Carolina and Florida recently introduced legislative proposals to incorporate Bitcoin into their state financial strategies, joining a rising number of U.S. states exploring digital asset investments.
The proposal would grant Florida’s Chief Financial Officer (CFO) the authority to allocate up to 10% of state-managed reserves, including the General Revenue Fund, Budget Stabilization Fund, and various trust funds, into Bitcoin and other cryptocurrencies.
Florida Senator Joe Gruters introduced SB 550, a bill titled “Investments of Public Funds in Bitcoin.”
The bill also permits Bitcoin investments for key state-managed funds, including pensions for teachers and state employees, insurance funds, and veterans’ home trust funds.
While Florida’s proposal focuses on direct Bitcoin holdings, North Carolina’s HB 92 takes a different approach, allowing investments in exchange-traded products tied to digital assets with a market capitalization exceeding $750 billion.
The bill sets clear guidelines on investment limits, regulatory compliance, and secure Bitcoin custody, positioning cryptocurrency as part of Florida’s financial infrastructure.
Representatives Mark Brody and Steve Ross, both recognized for their long-term advocacy of Bitcoin, co-sponsored the bill. Dan Spuller, Head of Industry Affairs at the Blockchain Association, who advised North Carolina officials on the legislation, noted that the proposal has gained traction among policymakers and industry experts, positioning the state as a potential leader in cryptocurrency adoption.
North Carolina’s bill carries added weight due to its sponsorship by Rep. Destin Hall, Speaker of the NC House of Representatives, a key decision-maker in the state’s legislative process.
Florida and North Carolina are set to become the 19th and 20th U.S. states to propose Bitcoin reserve legislation, following states like Texas, Wyoming, and Ohio. Their proposals would allocate up to 10% of excess state reserves into Bitcoin, further integrating digital assets into public finance.
The push for Bitcoin reserves at the state level is accelerating as institutional and government interest in digital assets expands.
He believes holding Bitcoin would hedge against inflation and reinforce the country’s digital economy, positioning the U.S. at the forefront of technological advancements.
Meanwhile, major asset managers have already secured over 5.91% of Bitcoin’s circulating supply through U.S. spot Bitcoin ETFs. These funds now hold a combined $114.5 billion worth of BTC, with BlackRock’s ETF accounting for 48.7% of these holdings.
VanEck’s Head of Research, Matthew Sigel, suggests that Bitcoin reserves could play a role in bolstering U.S. interests in sectors like energy, AI, and financial technology.
Institutions like the University of Austin are adopting a five-year Bitcoin holding strategy as part of their approach to risk management in digital asset investments.
However, past volatility—including a 64% decline in 2022—remains a factor, even as Bitcoin has shown substantial long-term price increases.