tl;dr
Florida has abandoned its plan to back public funds with Bitcoin after two bills were withdrawn without a vote. This follows a trend of several states, including Arizona, Oklahoma, South Dakota, Montana, North Dakota, Pennsylvania, Wyoming, and Utah, rejecting or abandoning Bitcoin reserve legislati...
Florida has officially withdrawn bills proposing the allocation of public funds to Bitcoin, effectively ending its crypto reserve effort in 2024. This move places Florida among several states abandoning or rejecting Bitcoin treasury legislation amid concerns over risks and volatility.
States including Arizona, Oklahoma, South Dakota, Montana, North Dakota, Pennsylvania, and Wyoming have all seen Bitcoin reserve bills fail or be pulled this year. For instance, Arizona’s Governor vetoed a Bitcoin investment bill aimed at pension funds, citing inappropriate risk, though a custody-focused bill remains under consideration.
Oklahoma’s Bitcoin reserve bill narrowly lost in the Senate Revenue and Taxation Committee despite some shifting support. Similarly, South Dakota, Montana, and North Dakota defeated Bitcoin reserve proposals, citing volatility and risk concerns. Pennsylvania and Wyoming also failed to advance such bills through committee.
Utah amended its blockchain legislation to remove provisions allowing digital asset investments before passing it, signaling a cautious stance. Earlier in 2024, over 45 Bitcoin reserve bills had been introduced in more than two dozen states; however, only 36 remain active in 19 states as legislative sessions close.
Texas and New Hampshire stand out as the most viable states continuing to push Bitcoin reserve legislation forward. Meanwhile, some lawmakers, like Arizona’s Senator Wendy Rogers, plan to reintroduce Bitcoin reserve bills in future sessions after previous setbacks.
Florida’s withdrawn bills, HB 487 and SB 550, proposed allocating up to 10% of select public funds to Bitcoin but were postponed indefinitely without a floor vote as the state’s session ended on May 3. This outcome mirrors a broader hesitation nationwide to back public funds with cryptocurrencies despite heightened national attention sparked by political endorsements.
Arizona led early legislative efforts with bills advancing through chambers before veto, yet custody-centric proposals there may soon find approval. In Oklahoma, despite close committee votes and some conversion of opinion due to constituent input, key bills faltered. Other states have cited Bitcoin’s price volatility as a decisive factor against such investments.
Wyoming and Pennsylvania’s proposals never gained traction, while Utah’s legislative pivot reflects a growing trend of cautious moderation in crypto asset exposure in public funds. With legislative sessions winding down, fewer Bitcoin reserve bills persist, intensifying the race to enact crypto treasury policies.
Looking ahead, the mixed legislative landscape suggests that while Bitcoin reserve adoption faces challenges, persistent advocates remain ready to renew efforts, highlighting the ongoing debate between innovation enthusiasm and risk management in state-level public fund investment strategies.