10% of public funds allocated to Bitcoin, Florida sparks a new trend in U.S. policy

U.S. state governments are rewriting their attitudes towards Bitcoin. Recently, Florida proposed a new bill to establish a strategic Bitcoin reserve, allowing the state government to allocate up to 10% of key public funds to hold Bitcoin and Bitcoin ETF products. Although this proposal still requires legislative approval, it sends an important signal: cryptocurrencies are moving from fringe assets to mainstream considerations in government asset allocation.

The Logic Behind the Policy Breakthrough

Why Florida

Florida’s proposal at this time is no coincidence. According to the latest news, the state has been active in the tokenization of real-world assets (RWA). The U.S. RWA leadership strategic plan, initiated through a partnership between Trusted Smart Chain and T7X, was announced at the Blockchain Futurist Conference held in Florida. This demonstrates the Florida government’s open attitude towards blockchain technology and digital assets. At the same time, as one of the major economic and financial centers in the U.S., Florida’s policies often have a demonstration effect.

The Significance of a 10% Allocation Ratio

While 10% may seem like a modest proportion, it is a significant breakthrough for public funds. Public funds are typically used for critical areas such as state pensions and education funds, with very conservative investment policies. Allowing 10% of these funds to be allocated to Bitcoin and Bitcoin ETFs indicates a reassessment of Bitcoin’s risk and return at the government level. This ratio reflects recognition of Bitcoin’s value while maintaining sufficient risk control.

Current Market Situation and Potential Impact

Institutional Recognition of Bitcoin

According to the latest data, Bitcoin’s current market capitalization is $1.80 trillion, accounting for 58.51% of the market, with a 24-hour trading volume of $4.188 billion. As the dominant player in the cryptocurrency market, Bitcoin has attracted a large number of institutional investors worldwide. However, official reserve plans at the state government level remain rare. Previously, only countries like El Salvador included Bitcoin in their national reserves. If this move by the U.S. state government materializes, it will be another significant milestone in institutional recognition.

The Possibility of Chain Reactions

If Florida’s proposal succeeds, other states are likely to follow suit. U.S. states compete fiercely in managing pensions and public funds. If Florida’s policy proves positive, other states may consider similar allocations to stay competitive. This could trigger a “Bitcoin reserve race” among U.S. state governments.

Issues to Watch

This proposal is still in its early stages and requires discussion and voting in the state legislature. Whether the bill will ultimately pass remains uncertain, and even if it does, specific implementation details are needed. Additionally, Bitcoin’s volatility remains a factor in public fund allocations, and the timing and methods of investment will need further clarification.

Summary

Florida’s proposal represents an increased recognition of Bitcoin within the U.S. policy environment. Although a 10% allocation is relatively conservative, investing public funds in cryptocurrencies is itself a significant breakthrough. If the bill is ultimately approved, it could inspire other states to follow suit, elevating Bitcoin’s status in U.S. government asset allocation. This is a positive signal for long-term Bitcoin investors, but policy implementation will still take time, and market reactions will depend on the details of the rollout.