Read the full stored bill text
Florida Senate
-
2026
CS for SB 1038
By
the Committee on Banking and Insurance; and Senator Gruters
597-02291-26 20261038c1
1 A bill to be entitled
2 An act relating to the Florida Strategic
3 Cryptocurrency Reserve; creating s. 215.991, F.S.;
4 providing a short title; creating s. 215.992, F.S.;
5 defining terms; creating s. 215.993, F.S.; authorizing
6 the Chief Financial Officer to take certain actions in
7 administering and managing the Florida Strategic
8 Cryptocurrency Reserve; requiring the Chief Financial
9 Officer to exercise judgment and care in a specified
10 manner in administering and managing the reserve;
11 authorizing payment of the reasonable cost of
12 administering and managing the reserve from a
13 specified source; authorizing the Chief Financial
14 Officer to purchase cryptocurrency for the reserve
15 only if a specified condition is met; authorizing the
16 Chief Financial Officer to contract with certain
17 third-party entities; authorizing the Chief Financial
18 Officer to invest in derivative instruments of
19 cryptocurrency under certain circumstances; specifying
20 that money in the reserve may be used only for a
21 specified purpose; authorizing the Chief Financial
22 Officer to liquidate assets of the reserve and
23 temporarily transfer the resulting moneys under
24 certain circumstances; requiring that such moneys be
25 returned as soon as practicable and in a specified
26 manner; creating the Florida Strategic Cryptocurrency
27 Reserve Advisory Committee for a specified purpose;
28 specifying the composition of the committee;
29 specifying matters the committee must advise on;
30 specifying that members serve without compensation but
31 may be reimbursed for certain expenses; specifying
32 that members of the committee serve at the pleasure of
33 the Chief Financial Officer; requiring, beginning on a
34 specified date and biennially thereafter, the Chief
35 Financial Officer to submit a report to the
36 Legislature; specifying requirements for the report;
37 requiring the Chief Financial Officer to liquidate
38 assets of the reserve and transfer moneys to the
39 General Revenue Fund upon the termination of the
40 reserve; requiring the Chief Financial Officer to
41 adopt rules; providing a contingent effective date.
42
43 Be It Enacted by the Legislature of the State of Florida:
44
45 Section 1. Section 215.991, Florida Statutes, is created to
46 read:
47
215.99
1
Short title.—Sections 215.99
1
-215.99
4
shall be
48
known and may be cited as the “Florida Strategic Cryptocurrency
49
Reserve Act.”
50 Section 2. Section 215.992, Florida Statutes, is created to
51 read:
52
215.99
2
Definitions relating to
the
Florida Strategic
53
Cryptocurrency Reserve Act.—As used in this section and ss.
54
215.99
3
and 215.99
4
, the term:
55
(1)
“Airdrop” means a gratuitous distribution of
56
cryptocurrency to users of a blockchain or protocol, generally
57
made in a broad, equitable, and nondiscretionary manner.
58
(2) “Blockchain” means a mathematically secured,
59
chronological, decentralized, distributed, and digital ledger or
60
database that consists of records of transactions that cannot be
61
altered retroactively.
62
(3)
“Cryptocurrency” means a virtual currency that is not
63
issued by any central authority, is designed to function as a
64
medium of exchange, and uses encryption technology to regulate
65
the generation of units of currency, to ver
if
y fund transfers,
66
and to prevent counterfeiting.
67
(4) “Distributed ledger” means technology in which data is
68
shared across a network that creates a public digital ledger of
69
verified transactions or information among network participants
70
and
in which
cryptography is used to link the data to maintain
71
the integrity of the public ledger and execute other functions.
72
(5)
“Fork” means a change to the protocol of a distributed
73
ledger system which creates a separate ledger, which may result
74
in a new cryptocurrency that shares a common transaction history
75
with the previous cryptocurrency up to the point of change.
76
(6) “Governmental entity” has the same meaning as in s.
77
215.986.
78
(7)
“Private key” means confidential cryptographic data
79
that allows a person or
an
entity to access, control, or
80
authorize transactions involving cryptocurrency or virtual
81
currency.
82
(8)
“Qualified custodian” means a state financial
83
institution or a federally chartered institution or other entity
84
regulated by th
e
state which is permitted to act as a custodian
85
of virtual currencies on behalf of clients.
86
(9)
“Qualified liquidity provider” means an entity that:
87
(a)
Is licensed or regulated under applicable federal or
88
state law;
89
(b)
Maintains audited financial statements prepared by an
90
independent certified public accountant;
91
(c)
Has at least 5 years of experience trading in the
92
digital assets industry;
93
(d)
Maintains an office and has a registered principal in
94
this state; and
95
(e)
Submits to the Chief Financial Officer a certification,
96
in a form prescribed by the Chief Financial Officer, attesting
97
that it meets the criteria in paragraphs (a)-(d).
98
(10)
“Reserve” means the Florida Strategic Cryptocurrency
99
Reserve established under ss. 215.99
3
and 215.99
4
.
100
(11)
“Secure custody solution” means a technological
101
product or a blended product and service that meets all of the
102
following criteria:
103
(a)
The cryptographic private keys are:
104
1.
Exclusively known by and accessible to the governmental
105
entity;
106
2.
Contained within an encrypted environment and accessible
107
only through end-to-end encrypted channels; and
108
3.
Not stored on, or accessible through, a smartphone.
109
(b)
The hardware containing the cryptographic private keys
110
is maintained in at least two geographically diverse, secure
111
data centers.
112
(c)
A multiparty governance structure for authorizing
113
transactions is implemented, user access control is enforced,
114
and all user-initiated actions are logged.
115
(d)
The provider implements a disaster recovery protocol
116
ensuring state access to assets if the provider becomes
117
unavailable.
118
(e)
The technological product or blended product and
119
service undergoes regular code audits and penetration testing,
120
with identified vulnerabilities promptly addressed.
121
(12)
“Virtual currency” has the same meaning as in s.
122
896.101(
2
).
123 Section 3. Section 215.993, Florida Statutes, is created to
124 read:
125
215.99
3
Administration of the Florida Strategic
126
Cryptocurrency Reserve.—
127
(1)
In administering and managing the reserve, the Chief
128
Financial Officer may acquire, exchange, sell, supervise,
129
manage, or retain cryptocurrency or any other asset authorized
130
under this section and shall exercise the judgment and care that
131
a prudent investor would exercise, in light of the purposes,
132
terms, distribution requirements, and other circumstances of the
133
reserve, by considering the reserve as a whole rather than a
134
single investment. The reasonable costs of administering and
135
managing the reserve may be paid from cryptocurrency held in the
136
reserve or from the net proceeds of the sale or exchange of such
137
cryptocurrency.
138
(2)
The Chief Financial Officer may purchase a
139
cryptocurrency for the reserve only if the cryptocurrency has
140
had an average market capitalization of at least $500 billion
141
during the preceding 24-month period.
142
(3)
The Chief Financial Officer may contract with third
143
party entities for the administration or management of the
144
reserve, including contracting with any of the following
145
entities:
146
(a)
A technology provider of a secure custody solution.
147
(b)
A certified public accountant, to perform an
148
independent audit of the reserve.
149
(c)
A qualified custodian who utilizes a secure custody
150
solution.
151
(d)
A qualified liquidity provider, to facilitate the
152
purchase and sale of assets in the reserve.
153
(4)
The Chief Financial Officer may invest in derivative
154
instruments of cryptocurrency authorized under s. 215.99
4
(2)(c)
155
if the Chief Financial Officer determines that such investment
156
is in the best interest of the state.
157
(5)(a)
Moneys in the reserve may be used only for
158
investment activities authorized under this section, for
159
temporary cash-management purposes authorized under paragraph
160
(b), and for paying the reasonable costs of administering and
161
managing the reserve.
162
(b)
The Chief Financial Officer may liquidate assets of the
163
reserve and temporarily transfer the resulting moneys to the
164
State Treasury if required to comply with a specific
165
appropriation by operation of law or order by the Governor.
166
(c)
Moneys temporarily transferred under paragraph (b) must
167
be returned to the reserve as soon as practicable, together with
168
any interest earned on such moneys while held in the State
169
Treasury.
170
(6)(a)
The Florida Strategic Cryptocurrency Reserve
171
Advisory Committee is created to advise the Chief Financial
172
Officer in the administration and management of the reserve.
173
(b)
The committee shall consist of five members, as
174
follows:
175
1.
The Chief Financial Officer, who shall serve as chair;
176
and
177
2.
Four members appointed by the Chief Financial Officer by
178
October 1, 2026, as follows:
179
a.
Three members with expertise in cryptocurrency
180
investments; and
181
b.
One member with expertise in digital asset security.
182
(c)
The committee shall advise on matters relating to:
183
1.
The valuation of assets held in the reserve;
184
2.
Prudent investment policies, including investment
185
objectives and asset allocation standards; and
186
3.
Prudent custody and security practices for the reserve.
187
(d)
Members of the committee shall serve without
188
compensation but may be reimbursed for per diem and travel
189
expenses in accordance with s. 112.061, if applicable.
190
(e)
Members appointed by the Chief Financial Officer serve
191
at the pleasure of the Chief Financial Officer.
192
(7)
Beginning December 31, 2026, and biennially thereafter,
193
the Chief Financial Officer shall submit a report to the
194
President of the Senate and the Speaker of the House of
195
Representatives which includes all of the following:
196
(a) The amount of cryptocurrency held in the reserve on the
197
last day of the preceding state fiscal year.
198
(b) The estimated monetary value of the cryptocurrency held
199
in the reserve on the last day of the preceding state fiscal
200
year.
201
(c) A summary of any changes in the amount and estimated
202
monetary value of cryptocurrency held in the reserve during the
203
preceding state fiscal year, disaggregated by cryptocurrency
204
type.
205
(d) A description of the actions taken by the Chief
206
Financial Officer to administer and manage the reserve during
207
the preceding state fiscal year.
208
(8)
Upon termination of the reserve under s. 215.
994
(4),
209
the Chief Financial Officer shall liquidate any remaining assets
210
of the reserve and transfer the resulting moneys to the General
211
Revenue Fund.
212
(9)
The Chief Financial Officer shall adopt rules as
213
necessary to administer th
is
section.
214 Section 4. This act shall take effect on July 1, 2026, but
215 only if SB 1040 or similar legislation takes effect, if such
216 legislation is adopted in the same legislative session or an
217 extension thereof and becomes a law.