Compass Investments

– Florida recently rejected bills HB 487 and SB 550, rejecting a proposal to create a state-funded bitcoin reserve.

Despite extending the legislative session to focus on budget planning until June 6, the cryptocurrency bills were not considered.

A number of other states have also chosen this path, with Arizona, Montana, North Dakota, Pennsylvania and Wyoming being prime examples.

Despite the current challenges, the debate over bitcoin as a strategic reserve is not over.

The bitcoin community took another blow this week when the state of Florida officially dropped out of the crypto race.

The U.S. state recently rejected two proposed bills, House Bill 487 and Senate Bill 550, which would have allowed state funds to be invested in bitcoin indefinitely.

The decision adds Florida to a growing list of U.S. states that have rejected similar initiatives.

These moves raise questions about bitcoin’s future as a state treasury asset, and here are some details.

The bills HB 487 and SB 550 were introduced earlier this year and were designed to allow Florida’s CFO and administrative board to allocate up to 10 percent of certain state funds to bitcoin.

Proponents saw this as a significant success for bitcoin and an opportunity to diversify the state’s portfolio with what they saw as a solid, deflationary asset.

Critics, in turn, drew attention to the volatility of bitcoin and the long-term risks associated with cryptocurrency.

The Florida Legislature eventually adjourned on May 2 without passing the bills, and on May 3 announced their official indefinite postponement and withdrawal from consideration.

This is especially discouraging considering Florida lawmakers have approved more than 230 bills, from banning smartphones in schools to protecting state parks, while overlooking investments in digital assets.

Florida’s decision is far from unique. Several other states have also rejected or even postponed similar bills: Arizona, Oklahoma, South Dakota, Montana, North Dakota, Pennsylvania and Wyoming are prime examples.

In most of these cases, the bills had broad support before failing in committee or on the floor.

Even Utah, once considered one of the most promising early adopters, adjusted one of its bills to remove a provision allowing investment in digital assets.

The final version of the bill eventually passed, but it still lacked the bitcoin component.

The number of active proposals has also declined, with more than 45 bitcoin reserve bills introduced in over twenty states earlier this year.