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Florida Legislative and Political Update 2025

Dear FBBA Members,

As Florida’s legislative session begins next week, I want to take a moment to update you on our top legislative priorities, the broader political landscape, and how you can help support our initiatives. This session, we are championing multiple blockchain and cryptocurrency-related bills, including HB 319 (Virtual Currency Kiosk Businesses) and SB 550 (Strategic Bitcoin Reserve).

Legislative Priorities & Blockchain Bills

1. Bitcoin Strategic Reserve Bill

The Bitcoin Strategic Reserve Bill seeks to position Florida as a leader in financial innovation by establishing Bitcoin reserves for the state. The bill has strong legislative backing with:

• Senate Sponsor: Senator Joe Gruters (Sarasota)

• House Sponsor: Representative Webster Barnaby (Tampa Bay area)
  
  Authorization for State Investments in Bitcoin:

  • The CFO is authorized to include Bitcoin in the state’s investment portfolio to preserve purchasing power and enhance economic stability.

  • Investments in Bitcoin are capped at 10% of total funds in any public account.

• Custody & Management:

  • Bitcoin must be held either directly by the CFO, by a qualified custodian, or as an exchange-traded product.

  • The CFO is permitted to loan Bitcoin under certain conditions to generate additional returns, with rules to be established for such transactions.

• Tax & Fee Structure:

  • Taxes and fees collected in Bitcoin will be transferred to the General Revenue Fund and reimbursed to the relevant state fund in U.S. currency.

• Regulatory Exemptions & Rulemaking:

  • The bill amends existing statutes to allow Bitcoin investments while ensuring they remain exempt from certain security requirements.

The bill is scheduled to move through three Senate committees and four House committees before reaching the floor for a full vote. Each committee hearing provides an opportunity for public comment and testimony, and we encourage all members to attend and voice their support.

2. HB 319 – Virtual Currency Kiosk Businesses

This bill, sponsored by Representative Fabricio, aims to establish a regulatory framework for virtual currency kiosk businesses under Florida Statute Chapter 560. It introduces key definitions, compliance requirements, and penalties for non-compliance. Key provisions include:

• Definitions & Oversight:

  • New terms such as "blockchain analytics," "owner-operator," and "virtual currency kiosk transaction" are introduced.

  • The Office of Financial Regulation is empowered to regulate these businesses, ensuring compliance with evolving economic and technological standards.

• Compliance & Registration:

  • Businesses must register and renew their licenses, providing specific business and operational details.

  • Virtual currency kiosk businesses must operate under registered legal names and properly disclosed fictitious names.

  • Non-registered businesses or those failing to renew their registrations will face criminal penalties.

• Consumer Protection & Blockchain Analytics:

  • Kiosks must display disclosures and attestations to educate customers on fraud risks.

  • Mandatory blockchain analytics are required to monitor transactions linked to potential criminal activity.

• Enforcement & Penalties:

  • The bill imposes criminal penalties for violations such as operating under an unregistered name or failing to use blockchain analytics correctly.

  • Courts are granted authority to invalidate registrations in cases of severe non-compliance.

This bill represents a critical step toward consumer protection and regulatory clarity for Florida’s growing virtual currency industry.

Florida’s Political Landscape & Key Elections

Upcoming CFO Appointment & 2026 Race

The position of Florida’s Chief Financial Officer (CFO), currently held by Jimmy Patronis, will become available just before the session begins. Governor DeSantis is expected to appoint Senator Blaise Ingoglia as the interim CFO. However, Senator Joe Gruters, our bill’s Senate sponsor, has announced his intention to run for the position in 2026. The FBBA will be putting its full support behind Senator Gruters as a champion of financial innovation and blockchain-friendly policies.

Gubernatorial Race & Political Divisions

Florida’s legislative session will conclude at the end of May, setting the stage for the upcoming gubernatorial race. This race is expected to highlight a split within Florida’s Republican Party, with two competing factions emerging:

• The Trump-Aligned Faction:

  • Congressman Byron Donalds is positioning himself as the leading Trump-backed candidate.

  • Donalds, a member of the Congressional Blockchain Caucus, has supported pro-crypto policies and has even proposed making Florida a national hub for digital assets.

• The DeSantis-Aligned Faction:

  • Casey DeSantis, Florida’s First Lady, is widely expected to enter the gubernatorial race as the preferred candidate of Governor Ron DeSantis.

  • Blaise Ingoglia, the likely incoming CFO, is also expected to play a significant role in this faction.

This division will be an important dynamic to watch, as it will shape Florida’s regulatory approach to blockchain, digital assets, and financial innovation moving forward.

Challenges & Legislative Strategy

While we do not anticipate direct opposition to our bills, the biggest challenge we face is time. Governor DeSantis’ previous special session on immigration delayed the legislative process, creating a backlog of bills that now have limited time for hearings.

With only 60 days in the session, and committee closures often occurring just 30 days in, many bills die simply because they run out of time for discussion.

However, the FBBA has successfully navigated these challenges before, and we are employing multiple legislative strategies to ensure the Bitcoin Strategic Reserve Bill, HB 319, and SB 550 move through the necessary committees and reach the House and Senate floor.

How You Can Support

Your involvement is crucial to the success of these bills. Here’s how you can help:

✔ Attend committee hearings and testify in support of these bills.
✔ Engage with your legislators and encourage them to prioritize blockchain-friendly policies.
✔ Spread the word through your networks to build momentum for our efforts.

We are incredibly grateful for your ongoing support and commitment to making Florida a leader in blockchain and Bitcoin innovation. We will continue providing updates as the session progresses.

If you have any questions or would like to get involved, please don’t hesitate to reach out.

Best,
Samuel R. Armes
President, Florida Blockchain Business Association
Email: [email protected]

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