Florida Withdraws Bitcoin Reserve Bill: A Setback in State-Level Crypto Race
The state of Florida has officially withdrawn two bills that would have established a state-level strategic Bitcoin reserve, marking a setback in local cryptocurrency adoption efforts amid a burgeoning digital asset market.
Florida’s House Bill 487 and Senate Bill 550 – which would have allowed the state to invest in Bitcoin and digital assets using public funds – were “indefinitely postponed and withdrawn from consideration” on May 3, according to CoinDesk. The legislative session ended without the bills being formally debated, as budget priorities and more than 230 other legislative proposals dominated the agenda.
⚖️ Legislative Overview and Impact
The move adds Florida to a growing list of states that have failed to pass Bitcoin-related legislation, joining Wyoming, South Dakota, North Dakota, Pennsylvania, Montana, and Oklahoma, according to data compiled by Cointelegraph.
Still, the race among states to become a hub for digital financial innovation continues. Arizona, once a frontrunner, saw Governor Katie Hobbs veto House Bill 1025, which called digital assets “unproven investments.” The bill proposed using seized funds to create a state-level Bitcoin reserve.
🏛️ North Carolina Takes the Lead
In contrast to Florida, North Carolina is emerging as a bright spot. The state’s House of Representatives passed a bill that would allow the state treasurer to invest in cryptocurrencies by a vote of 71–44, ZyCrypto reports. To date, 28 states have proposed policies related to Bitcoin reserves, with 18 states in the legislative process.
📈 Dynamic Markets and Accelerated Investment
States’ consideration of Bitcoin holdings comes as BTC prices hover around $95,000, not far from its all-time high of $109,000 set in January 2025, according to Finance Magnates. Despite short-term fluctuations, many analysts still predict Bitcoin will grow steadily in the second half of the year.
Major financial institutions such as BlackRock, Fidelity, and MicroStrategy are continuing to expand their cryptocurrency portfolios, indicating a growing recognition of Bitcoin as a long-term reserve asset. BlackRock noted: “Increased investor participation could lead to better price discovery and greater liquidity, which could help stabilize market prices.”
That said, financial advisors still recommend a modest allocation to crypto, typically 1%–2% of a personal portfolio, as Investopedia notes.
🇺🇸 Country Outlook and Political Impact
The events in Florida also take place within a larger political context, as President Donald Trump is running for re-election and has pledged to create a National Bitcoin Reserve, preventing the government from selling seized digital assets and calling them part of the nation’s “digital gold,” according to a report from Security.org. About 60% of Americans believe that cryptocurrencies will perform better with Trump in power, reflecting policy polarization but also a push for innovation from states.
🔍 Summary and Outlook
The withdrawal of the Florida bills is a temporary setback in a long-term trend toward Bitcoin adoption at the local government level. However, rising institutional investment, support from national governments, and market appeal continue to be factors driving the integration of traditional finance and digital assets.
Despite regulatory hurdles, public interest remains strong. According to a recent survey, 2 in 3 people planning to invest in cryptocurrencies in 2025 chose Bitcoin as their top choice, reflecting confidence in the long-term potential of the world's leading digital asset.