FLORIDA WITHDRAWS STRATEGIC BITCOIN RESERVE BILLS AS STATE BITCOIN RACE CONTINUES
Florida has officially withdrawn two bills aimed at establishing a state-level strategic Bitcoin reserve, dealing a blow to cryptocurrency advocates in the state. According to CoinDesk, Florida's House Bill 487 and Senate Bill 550 have been "indefinitely postponed and withdrawn from consideration" on May 3. The Florida legislative session adjourned on May 2 without passing these two bills, which would have allowed investment of public funds in Bitcoin and other cryptocurrencies.
This development adds Florida to a growing list of states that have seen Bitcoin reserve legislation fail, including Wyoming, South Dakota, North Dakota, Pennsylvania, Montana, and Oklahoma, according to tracking data from Cointelegraph. The Senate and House agreed to extend the session until June 6 to address budget plans, but diversifying state treasury portfolios was not prioritized among the approximately 230 bills passed during the session.
STATE LEGISLATION LANDSCAPE
The withdrawal of Florida's Bitcoin reserve bills comes at a pivotal moment in the nationwide race to establish state-level cryptocurrency reserves. Arizona recently advanced its Strategic Bitcoin Reserve legislation further than any other state, until Governor Katie Hobbs vetoed House Bill 1025 on May 3, referring to digital assets as "untested investments" according to Bitcoinist.
The vetoed Arizona bill would have permitted the state to invest seized funds into Bitcoin and create a reserve managed by state officials. The decision drew criticism from cryptocurrency advocates, including entrepreneur Anthony Pompliano, who questioned the wisdom of politicians making investment decisions, as reported by FXStreet.
Currently, North Carolina stands in second place in the state Bitcoin reserve race after its House of Representatives recently passed a bill allowing the state treasurer to invest in cryptocurrencies with a 71 to 44 vote, according to ZyCrypto. Throughout the United States, 28 states have proposed allocating public funds to Bitcoin, with 18 actively progressing through legislative channels.
MARKET CONTEXT AND INVESTMENT TRENDS
The push for state Bitcoin reserves comes amid a dynamic cryptocurrency market. Bitcoin is currently trading near $95,000, not far from its all-time high of about $109,000 set in January 2025, according to Finance Magnates. The cryptocurrency has shown resilience after a spring drawdown, with many analysts projecting continued growth throughout 2025.
Institutional adoption of Bitcoin continues to accelerate in 2025, with major financial players like BlackRock, Fidelity, and MicroStrategy expanding their cryptocurrency offerings and investments. According to BlackRock, "increased levels of investor participation can lead to improvements in price discovery and liquidity – and as a consequence – create more price stability" for Bitcoin.
Financial advisors, however, remain cautious about recommending Bitcoin to clients despite its recent price performance. Many suggest allocating only a small portion of investment portfolios to cryptocurrencies, typically between 1% to 2%, as noted by Investopedia.
IMPLICATIONS AND FUTURE OUTLOOK
The withdrawal of Florida's Bitcoin reserve bills represents a setback in what has become a competitive race among states to embrace cryptocurrency as a treasury asset. This development occurs at a time when federal-level interest in Bitcoin has also intensified, with President Trump previously announcing plans for a national strategic Bitcoin reserve.
According to Security.org, 60% of survey respondents believe cryptocurrency will perform better with Trump in office. The president previously pledged to establish a national strategic Bitcoin reserve and prevent the government from selling any Bitcoin holdings seized from criminal operations.
While some states are retreating from Bitcoin legislation, analysts predict continued integration between cryptocurrency and traditional finance in 2025. According to Mastercard, the trend will continue as traditional finance applies blockchain technology to solve long-standing financial problems, with more regulatory clarity expected throughout the year.
Despite the mixed legislative results at the state level, cryptocurrency adoption continues to grow. Bitcoin remains the most sought-after cryptocurrency in 2025, with two in three people who plan to purchase crypto this year expressing interest in Bitcoin, suggesting ongoing public interest regardless of legislative outcomes.
Related Reading on BTC Peers
For more cryptocurrency insights, read 100 Reasons for Bitcoin National Reserves on BTC Peers, which explores the strategic arguments for governments to adopt Bitcoin.
