The wave of pro-digital asset legislation is gaining momentum, with 17 U.S. states now considering strategic Bitcoin reserves.
Florida, Maryland, and Iowa have joined the growing number of U.S. states proposing legislation to integrate Bitcoin into their state financial strategies.
In Florida, on February 7, Republican Senator Joe Gruters introduced a bill (SB550) that would allow the state to invest in Bitcoin and other cryptocurrencies. The legislation sets a 10% cap on total fund allocations for Bitcoin investments, including the General Revenue Fund, Budget Stabilization Fund, and state agency trust funds.
Gruters stated:
“Inflation has eroded the purchasing power of assets held in state funds managed by the chief financial officer. The state should have access to tools such as Bitcoin to protect against inflation.”
Florida’s Chief Financial Officer Jimmy Patronis had already revealed last October that the state held approximately $800 million in digital asset-related investments.
Meanwhile, in Iowa, Representative Taylor Collins introduced House File 246, outlining new investment opportunities for the State Treasurer. The bill authorizes investments in precious metals and digital assets with a market capitalization exceeding $750 billion, averaged over the previous calendar year. It also allows investments in stablecoins.
Iowa’s public funds, including the General Fund, Cash Reserve Fund, and Economic Emergency Fund, would be eligible for these investments. However, the bill limits digital asset investments to 5% of available public funds at the time of investment.
At the same time, in Maryland, State Representative Caylin Young introduced a bill (HB1389) to establish a Strategic Bitcoin Reserve Fund, designed specifically as a hedge against fiat currency inflation.
Maryland’s proposal would enable the state to invest in Bitcoin using funds collected from gambling violations and would accept Bitcoin donations from both government entities and state residents. Additionally, the bill mandates that government agencies accept cryptocurrencies for taxes, fees, fines, and other authorized payments.
With this initiative, Maryland becomes the 17th U.S. state to consider a strategic Bitcoin reserve.
