Representative John Snyder has introduced House Bill 1039, aiming to initiate the establishment of a strategic cryptocurrency reserve within Florida.
He is supported by Senator Joe Gruters, who has put forward two bills—SB 1040 and SB 1038—that also advocate for creating this reserve alongside a trust fund designated to hold and manage digital assets.
The proposal specifies that only cryptocurrencies with an average market capitalization of at least $500 billion over the past 24 months qualify for purchase into the reserve.
This criterion currently limits the reserve’s holdings primarily to Bitcoin, which boasts a market cap exceeding $1 trillion. Other cryptocurrencies fall short; Ethereum is closest with approximately $380 billion in market value at present.
This initiative isn’t Florida’s first attempt at forming a crypto reserve. Earlier efforts such as HB 487 and SB 550 were withdrawn in May 2025, while Representative Webster Barnaby submitted HB 183 later that year with updated provisions after previous setbacks.
Florida Aligns With Trump’s Executive Order on Bitcoin Reserve
The timing of Florida’s proposal coincides with several states moving toward their own strategic crypto reserves following President Trump’s executive order in March 2025 establishing a federal Strategic Bitcoin Reserve.
Texas led by example in December 2025 by allocating $5 million towards purchasing Bitcoin for its state-held cryptocurrency fund. New Hampshire became the first state to enact legislation allowing its treasurer to invest up to five percent of public funds into digital assets valued above $500 billion market capitalization.
Arizona passed more limited laws permitting it to retain seized cryptocurrency assets within state control.
Advocates argue these reserves keep state financial systems innovative while serving as inflation hedges—positioning Bitcoin as a modern store of value akin to how governments have historically used gold for safeguarding public funds.
Senator Gruters frames his legislative efforts as part of a long-term investment approach designed both to diversify Florida’s portfolio and embrace emerging opportunities presented by the digital economy. The bill outlines plans for expanding the state’s crypto holdings through legal recoveries, revenue streams, direct purchases, and rewards from blockchain forks or token distributions (airdrops).
Regulatory Framework Advances While Market Volatility Persists
Bitcoin reached an all-time peak surpassing $126,000 in October but experienced sharp declines before month-end; currently trading near $90,000 at this writing during late-2025 bullish speculation predicting prices above $200,000 had circulated widely. Critics caution against investing taxpayer dollars into such volatile instruments given inherent risks involved.
A major concern beyond price swings relates to insufficient regulation across much of the digital asset sector—a factor particularly troubling for institutional investors both public and private alike.
The enactment of legislation like the GENIUS Act marked initial progress toward enhanced regulatory oversight within this space. Upcoming measures such as the CLARITY bill promise further governance improvements aimed at providing investors greater protection compared with previously unregulated conditions often described as “the wild west.”
The proposed law includes an effective date contingent upon July 1, 2026 implementation timelines.