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Florida Senator Proposes Bitcoin Investment Bill for State Funds
On February 7, a new bill was introduced by Florida Senator Joe Gruters, proposing the inclusion of Bitcoin and other digital assets in the state’s investment portfolio. The move comes as part of an effort to hedge against inflation, which has consistently eroded the value of state-managed funds.
According to Senator Gruters, it is essential for Florida to have access to alternative investment tools like Bitcoin to maintain its financial stability. Citing major institutions such as BlackRock, Fidelity, and Franklin Templeton, he emphasized that many prominent organizations have already adopted Bitcoin as part of their investment strategies. Additionally, he highlighted the significant growth and increased global acceptance of Bitcoin.
In his proposal, Senator Gruters granted Florida’s Chief Financial Officer (CFO) Jimmy Patronis permission to invest in Bitcoin through various state-managed funds. The specific funds allocated for such investments include the general reserve fund, budget stabilization fund, and agency trust funds. To mitigate risks, a 10% cap has been set on Bitcoin holdings for any state-managed account.
In contrast, Wyoming proposed a lower 3% cap in a similar bill. However, it remains unclear how the state plans to store or secure its Bitcoin holdings, as well as what additional oversight measures would be put in place.
CFO Patronis previously expressed his support for investing in Bitcoin by writing a letter to the Florida State Board of Administration on October 29. In the letter, he referred to Bitcoin as “digital gold” and suggested that it could help diversify Florida’s investment portfolio. He also pointed out its potential to act as a hedge against market volatility and protect state funds from economic uncertainty.
The move comes just days after Kentucky Representative Theodore Joseph Roberts introduced a similar bill on February 6. KY HB376 allows the State Investment Commission to allocate up to 10% of excess state reserves into Bitcoin and other digital assets, mirroring Florida’s proposal. This growing trend among U.S. states considering legislation to invest in Bitcoin could be indicative of an increase in interest from government agencies in cryptocurrency investment at the national level.
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