State-Level Caution: US States Pause Bitcoin Public Fund Investment

The increasing interest in incorporating digital assets into public finances has encountered a notable hesitation at the state level in the United States. Florida, for instance, has recently chosen to pause its exploration into Bitcoin investments for its public funds, reflecting a cautious approach also seen in other parts of the country.

Florida Halts Bitcoin Reserve Legislation

Legislative efforts in Florida aimed at authorizing state financial authorities to allocate portions of government-managed assets to Bitcoin have been suspended. Two key proposals, House Bill 487 and Senate Bill 550, which could have permitted up to 10% of certain funds to be invested in the leading cryptocurrency, were introduced earlier this year. However, both bills have now been indefinitely postponed. This decision effectively puts any immediate plans for Florida to establish a state-backed Bitcoin reserve on hold, with no clear timeline for when these discussions might resume.

A Wider Pattern of State-Level Caution

Florida’s decision aligns with a broader trend across the United States, where several states have either delayed or rejected similar legislative measures. Efforts to integrate cryptocurrencies into state financial strategies have faced roadblocks in states such as Pennsylvania, Montana, Oklahoma, and the Dakotas. Even in Arizona, where momentum for such initiatives appeared to be growing, Governor Katie Hobbs vetoed a significant bill on May 3rd. Her reasoning highlighted concerns over digital assets being “unproven” and, therefore, unsuitable for public fund exposure.

A notable exception to this trend is the city of Roswell, which recently distinguished itself by becoming the first municipality in the U.S. to create a Bitcoin reserve, signaling localized confidence in the asset.

Anticipation for Federal Guidance

Meanwhile, the entire nation awaits clearer directives from the federal government. A report detailing a national strategy for Bitcoin reserves was anticipated from U.S. Treasury Secretary Scott Bessent. This report was expected following an executive order issued by President Trump, who is currently the U.S. President, in March 2025. Although a deadline of May 5th for this report has passed, no public information has been released. The forthcoming document is expected to outline how such reserves could be managed, what legislative adjustments would be necessary, and an assessment of Bitcoin’s suitability for inclusion in national financial accounts.

Considering Bitcoin was trading around $94,000 at the time of the original report’s basis, any affirmative signal from the Treasury Department could have substantial repercussions for the market, potentially driving the asset to achieve new record valuations.