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CS/CS/HB 1039 2026
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F L O R I D A H O U S E O F R E P R E S E N T A T I V E S
A bill to be entitled 1
An act relating to the establishment and 2
administration of a state cryptocurrency reserve; 3
creating s. 215.987, F.S.; providing definitions; 4
establishing the Florida Strategic Cryptocurrency 5
Reserve Fund as a special fund assigned to the State 6
Board of Administration; providing the objective of 7
the reserve; providing for the custody, 8
administration, and management of the reserve; 9
providing sources of the reserve; authorizing the 10
Legislature to appropriate funds for deposit to the 11
credit of the reserve for specified purposes; 12
authorizing the board to pay certain costs using the 13
cryptocurrency in the reserve or the net proceed from 14
the sale of cryptocurrency in the reserve; authorizing 15
transfer of the reserve money to the State Treasury 16
under certain circumstances; authorizing the board to 17
dispose of certain cryptocurrency received by the 18
reserve; providing requirements for cryptocurrency to 19
be purchased for the reserve; authorizing contracts 20
with third parties for the administration or 21
management of the reserve; authorizing the board to 22
use derivatives under certain circumstances; 23
authorizing contracts with certified public 24
accountants for independent audits; establishing the 25
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F L O R I D A H O U S E O F R E P R E S E N T A T I V E S
Florida Strategic Cryptocurrency Reserve Fund Advisory 26
Committee within the board; providing for committee 27
membership; providing duties and terms of committee 28
members; providing construction; requiring the board 29
to adopt rules; amending s. 215.44, F.S.; requiring 30
the board to provide to the Legislature certain 31
information relating to the reserve; providing an 32
effective date. 33
34
WHEREAS, cryptocurrencies are assets with strategic 35
potential for enhancing this state's financial resilience and 36
positioning this state for the future digital economy, and 37
WHEREAS, cryptocurrencies can serve as a hedge against 38
inflation and economic volatility, and 39
WHEREAS, the establishment of a cryptocurrency reserve 40
serves the public purpose of providing enhanced financial 41
security to residents of this state, NOW, THEREFORE, 42
43
Be It Enacted by the Legislature of the State of Florida: 44
45
Section 1. Section 215.987, Florida Statutes, is created 46
to read: 47
215.987 State cryptocurrency reserve fund.— 48
(1) DEFINITIONS.—As used in this section, the term: 49
(a) "Airdrop" means a gratuitous distribution of 50
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F L O R I D A H O U S E O F R E P R E S E N T A T I V E S
cryptocurrency to users of a blockchain or protocol, generally 51
made in a broad, equitable, and nondiscretionary manner. 52
(b) "Blockchain" means a mathematically secured, 53
chronological, decentralized, distributed, and digital ledger or 54
database that consists of records of transactions that cannot be 55
altered retroactively. 56
(c) "Board" means the State Board of Administration. 57
(d) "Committee" means the Florida Strategic Cryptocurrency 58
Reserve Fund Advisory Committee established in this section. 59
(e) "Cryptocurrency" means a virtual currency that is not 60
issued by any central authority, is designed to function as a 61
medium of exchange, and uses encryption technology to regulate 62
the generation of units of currency, to verify fund transfers, 63
and to prevent counterfeiting. 64
(f) "Distributed ledger" means technology in which data is 65
shared across a network that creates a public digital ledger of 66
verified transactions or information among network participants 67
and cryptography is used to link the data to maintain the 68
integrity of the public ledger and execute other functions. 69
(g) "Fork" means a change to the protocol of a distributed 70
ledger system which creates a separate ledger, which may result 71
in a new cryptocurrency that shares a common transaction history 72
with the previous cryptocurrency up to the point of change. 73
(h) "Governmental entity" has the same meaning as in s. 74
215.986(1). 75
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F L O R I D A H O U S E O F R E P R E S E N T A T I V E S
(i) "Private key" means a unique element of cryptographic 76
data used for signing transactions on blockchain. 77
(j) "Qualified custodian" means a state or federally 78
chartered financial institution or other entity regulated by 79
this state which is authorized to have custody of virtual 80
currencies on behalf of its clients. 81
(k) "Qualified liquidity provider" means an entity that 82
meets all of the following requirements: 83
1. Is licensed or regulated under applicable federal or 84
state law. 85
2. Maintains audited financial statements prepared by a 86
regulated auditor. 87
3. Has at least 5 years of experience trading in the 88
digital assets industry. 89
4. Maintains an office and has registered principal in 90
this state. 91
5. Has certified in a manner prescribed by the board that 92
the provider meets the requirements of subparagraphs 1.-4. 93
(l) "Reserve" means the Florida Strategic Cryptocurrency 94
Reserve Fund established in this section. 95
(m) "Secure custody solution" means a technological 96
product or blended product and service meeting all of the 97
following criteria: 98
1. The cryptographic private keys are: 99
a. Exclusively known by and accessible to the governmental 100
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F L O R I D A H O U S E O F R E P R E S E N T A T I V E S
entity or the qualified custodian. 101
b. Contained within an encrypted, hardware-secured 102
environment and used only to sign and authorize cryptocurrency 103
transactions through end-to-end encrypted channels. 104
c. Never stored on or accessible through a smartphone. 105
2. The hardware containing the cryptographic private keys 106
is maintained in a secure data center. As used in this 107
subparagraph, the term "secure data center" means a physical 108
facility that maintains third-party certifications, uses 109
certified cryptographic hardware, enforces physical and 110
environmental security, and ensures logical isolation. 111
3. A multiparty governance structure for authorizing 112
transactions is implemented, user access control is enforced, 113
and all user-initiated actions are logged. A smartphone may be 114
used, but only to authenticate authorized users of the secure 115
custody solution, including through biometric authentication. 116
4. The provider of the technological product or blended 117
product and service has implemented a disaster recovery protocol 118
ensuring state access to assets if the provider becomes 119
unavailable. 120
5. The technological product or blended product and 121
service undergoes regular code audits and penetration testing, 122
with identified vulnerabilities promptly addressed. 123
(2) ESTABLISHMENT; ADMINISTRATION.— 124
(a) The Florida Strategic Cryptocurrency Reserve Fund is 125
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F L O R I D A H O U S E O F R E P R E S E N T A T I V E S
established as a special fund assigned to the board. The 126
objective of the reserve is to grow the reserve as much as 127
possible to ensure the long-term financial sovereignty of this 128
state. The board has custody of and shall administer and manage 129
the reserve. The reserve consists of: 130
1. Money transferred or deposited to the credit of the 131
reserve by legislative appropriation. 132
2. Revenue that the Legislature by general law dedicates 133
for deposit to the credit of the reserve. 134
3. Cryptocurrency purchased using money in or received by 135
the reserve, including: 136
a. Cryptocurrency derived from the fork of a distributed 137
ledger, the retention of which has been approved by the board; 138
or 139
b. Cryptocurrency distributed pursuant to an airdrop to 140
this state's cryptocurrency addresses, the retention of which 141
has been approved by the board. 142
4. Investment earnings and interest or rewards earned on 143
assets in the reserve. 144
(b) To administer and manage the reserve, the board may 145
acquire, exchange, sell, supervise, manage, or retain authorized 146
investments that a prudent investor exercising reasonable care, 147
skill, and caution would acquire, exchange, sell, supervise, 148
manage, or retain in light of the objective of the reserve, 149
taking into consideration the investment of all the assets of 150
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F L O R I D A H O U S E O F R E P R E S E N T A T I V E S
the reserve rather than a single investment. 151
(c) The Legislature may appropriate funds for deposit to 152
the credit of the reserve for the purposes of: 153
1. Investing in cryptocurrency. 154
2. Administering and managing the reserve. 155
(d) The board may spend cryptocurrency in the reserve or 156
use the net proceed from the sale of cryptocurrency in the 157
reserve to pay the reasonable costs associated with 158
administering and managing the reserve. Costs and fees of the 159
board for investment services shall be deducted from the 160
reserve. 161
(e) The board may transfer money in the reserve to the 162
State Treasury only when authorized by the Legislature in the 163
General Appropriations Act or other law. 164
(f) Cryptocurrency received by the reserve which is not 165
compliant with applicable federal or state law may be disposed 166
of by the board in accordance with applicable law. 167
(3) MARKET CAPITALIZATION REQUIREMENT.—To be eligible to 168
be purchased for the reserve, a cryptocurrency must have an 169
average market capitalization of at least $100 billion over the 170
most recent 12-month period. 171
(4) THIRD-PARTY CONTRACTS AND PERMISSIBLE TRANSACTIONS; 172
AUDITS.— 173
(a) The board may contract with one or more third-party 174
entities for the administration or management of the reserve, 175
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F L O R I D A H O U S E O F R E P R E S E N T A T I V E S
including: 176
1. A technology provider of a secure custody solution. 177
2. A qualified custodian that uses a secure custody 178
solution. 179
3. A qualified liquidity provider to facilitate the 180
purchase and sale of assets in the reserve. 181
(b) If the board determines it is in the best interest of 182
the reserve, the board may use derivatives. 183
(c) The board may contract with a certified public 184
accountant to perform an independent audit of the reserve. 185
(5) FLORIDA STRATEGIC CRYPTOCURRENCY RESERVE FUND ADVISORY 186
COMMITTEE.— 187
(a) There is established the Florida Strategic 188
Cryptocurrency Reserve Fund Advisory Committee within the board. 189
(b) The committee shall be composed of the following five 190
members as a resource to the board of trustees of the board, 191
subject to confirmation by the Senate, as follows: 192
1. The executive director of the board, who shall serve as 193
chair. 194
2. Three members appointed by the board with expertise in 195
cryptocurrency investments. 196
3. One member appointed by the board with expertise in 197
digital asset security. 198
(c) The committee shall advise the board regarding the 199
administration and management of the reserve, including: 200
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F L O R I D A H O U S E O F R E P R E S E N T A T I V E S
1. Recommendations for valuing assets in the reserve. 201
2. The establishment of prudent investment policies 202
relating to the investment objectives of and asset allocation in 203
the reserve. 204
3. Recommendations for the establishment of prudent 205
custody and security policies for the reserve. 206
(d) A member of the committee is not entitled to receive 207
compensation for service on the committee. 208
(e) Appointed members shall serve for 4-year terms. A 209
vacancy shall be filled for the remainder of the unexpired term 210
in the same manner as the original appointment. 211
(6) NO PRIVATE CAUSE OF ACTION.—This section does not 212
create a private cause of action related to compliance with the 213
requirements of this section. 214
(7) RULEMAKING.—The board shall adopt rules as necessary 215
to administer the Florida Strategic Cryptocurrency Reserve Fund. 216
Section 2. Paragraph (g) is added to subsection (5) of 217
section 215.44, Florida Statutes, to read: 218
215.44 Board of Administration; powers and duties in 219
relation to investment of trust funds.— 220
(5) On or before January 1 of each year, the board shall 221
provide to the Legislature a report including the following 222
items for each fund which, by law, has been entrusted to the 223
board for investment: 224
(g) With respect to the Florida Strategic Cryptocurrency 225
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F L O R I D A H O U S E O F R E P R E S E N T A T I V E S
Reserve Fund, the following information: 226
1. The amount of cryptocurrency held in the reserve on the 227
last day of the preceding fiscal year. 228
2. An estimate of the monetary value of the cryptocurrency 229
held in the reserve on the last day of the preceding fiscal 230
year. 231
3. Any changes in the amount and estimated monetary value 232
of cryptocurrency in the reserve during the period the 233
cryptocurrency has been held in the reserve, disaggregated by 234
the cryptocurrency type. 235
4. A description of the actions taken by the board to 236
administer and manage the reserve during the preceding fiscal 237
year. 238
Section 3. This act shall take effect January 1, 2027. 239