Florida Senate - 2026                        COMMITTEE AMENDMENT
       Bill No. SB 1038
       
       
       
       
       
       
                                Ì152950#Î152950                         
       
                              LEGISLATIVE ACTION                        
                    Senate             .             House              
                                       .                                
                                       .                                
                                       .                                
                                       .                                
                                       .                                
       —————————————————————————————————————————————————————————————————




       —————————————————————————————————————————————————————————————————
       The Committee on Banking and Insurance (Gruters) recommended the
       following:
       
    1         Senate Amendment (with title amendment)
    2  
    3         Delete lines 44 - 188
    4  and insert:
    5         Section 1. Section 215.991, Florida Statutes, is created to
    6  read:
    7         215.991 Short title.—Sections 215.991-215.994 shall be
    8  known and may be cited as the “Florida Strategic Cryptocurrency
    9  Reserve Act.”
   10         Section 2. Section 215.992, Florida Statutes, is created to
   11  read:
   12         215.992Definitions relating to the Florida Strategic
   13  Cryptocurrency Reserve Act.—As used in this section and ss.
   14  215.993 and 215.994, the term:
   15         (1)“Airdrop” means a gratuitous distribution of
   16  cryptocurrency to users of a blockchain or protocol, generally
   17  made in a broad, equitable, and nondiscretionary manner.
   18         (2) “Blockchain” means a mathematically secured,
   19  chronological, decentralized, distributed, and digital ledger or
   20  database that consists of records of transactions that cannot be
   21  altered retroactively.
   22         (3)“Cryptocurrency” means a virtual currency that is not
   23  issued by any central authority, is designed to function as a
   24  medium of exchange, and uses encryption technology to regulate
   25  the generation of units of currency, to verify fund transfers,
   26  and to prevent counterfeiting.
   27         (4) “Distributed ledger” means technology in which data is
   28  shared across a network that creates a public digital ledger of
   29  verified transactions or information among network participants
   30  and in which cryptography is used to link the data to maintain
   31  the integrity of the public ledger and execute other functions.
   32         (5)“Fork” means a change to the protocol of a distributed
   33  ledger system which creates a separate ledger, which may result
   34  in a new cryptocurrency that shares a common transaction history
   35  with the previous cryptocurrency up to the point of change.
   36         (6) “Governmental entity” has the same meaning as in s.
   37  215.986.
   38         (7)“Private key” means confidential cryptographic data
   39  that allows a person or an entity to access, control, or
   40  authorize transactions involving cryptocurrency or virtual
   41  currency.
   42         (8)“Qualified custodian” means a state financial
   43  institution or a federally chartered institution or other entity
   44  regulated by the state which is permitted to act as a custodian
   45  of virtual currencies on behalf of clients.
   46         (9)“Qualified liquidity provider” means an entity that:
   47         (a)Is licensed or regulated under applicable federal or
   48  state law;
   49         (b)Maintains audited financial statements prepared by an
   50  independent certified public accountant;
   51         (c)Has at least 5 years of experience trading in the
   52  digital assets industry;
   53         (d)Maintains an office and has a registered principal in
   54  this state; and
   55         (e)Submits to the Chief Financial Officer a certification,
   56  in a form prescribed by the Chief Financial Officer, attesting
   57  that it meets the criteria in paragraphs (a)-(d).
   58         (10)“Reserve” means the Florida Strategic Cryptocurrency
   59  Reserve established under ss. 215.993 and 215.994.
   60         (11)“Secure custody solution” means a technological
   61  product or a blended product and service that meets all of the
   62  following criteria:
   63         (a)The cryptographic private keys are:
   64         1.Exclusively known by and accessible to the governmental
   65  entity;
   66         2.Contained within an encrypted environment and accessible
   67  only through end-to-end encrypted channels; and
   68         3.Not stored on, or accessible through, a smartphone.
   69         (b)The hardware containing the cryptographic private keys
   70  is maintained in at least two geographically diverse, secure
   71  data centers.
   72         (c)A multiparty governance structure for authorizing
   73  transactions is implemented, user access control is enforced,
   74  and all user-initiated actions are logged.
   75         (d)The provider implements a disaster recovery protocol
   76  ensuring state access to assets if the provider becomes
   77  unavailable.
   78         (e)The technological product or blended product and
   79  service undergoes regular code audits and penetration testing,
   80  with identified vulnerabilities promptly addressed.
   81         (12)“Virtual currency” has the same meaning as in s.
   82  896.101(2).
   83         Section 3. Section 215.993, Florida Statutes, is created to
   84  read:
   85         215.993Administration of the Florida Strategic
   86  Cryptocurrency Reserve.—
   87         (1)In administering and managing the reserve, the Chief
   88  Financial Officer may acquire, exchange, sell, supervise,
   89  manage, or retain cryptocurrency or any other asset authorized
   90  under this section and shall exercise the judgment and care that
   91  a prudent investor would exercise, in light of the purposes,
   92  terms, distribution requirements, and other circumstances of the
   93  reserve, by considering the reserve as a whole rather than a
   94  single investment. The reasonable costs of administering and
   95  managing the reserve may be paid from cryptocurrency held in the
   96  reserve or from the net proceeds of the sale or exchange of such
   97  cryptocurrency.
   98         (2)The Chief Financial Officer may purchase a
   99  cryptocurrency for the reserve only if the cryptocurrency has
  100  had an average market capitalization of at least $500 billion
  101  during the preceding 24-month period.
  102         (3)The Chief Financial Officer may contract with third
  103  party entities for the administration or management of the
  104  reserve, including contracting with any of the following
  105  entities:
  106         (a)A technology provider of a secure custody solution.
  107         (b)A certified public accountant, to perform an
  108  independent audit of the reserve.
  109         (c)A qualified custodian who utilizes a secure custody
  110  solution.
  111         (d)A qualified liquidity provider, to facilitate the
  112  purchase and sale of assets in the reserve.
  113         (4)The Chief Financial Officer may invest in derivative
  114  instruments of cryptocurrency authorized under s. 215.994(2)(c)
  115  if the Chief Financial Officer determines that such investment
  116  is in the best interest of the state.
  117         (5)(a)Moneys in the reserve may be used only for
  118  investment activities authorized under this section, for
  119  temporary cash-management purposes authorized under paragraph
  120  (b), and for paying the reasonable costs of administering and
  121  managing the reserve.
  122         (b)The Chief Financial Officer may liquidate assets of the
  123  reserve and temporarily transfer the resulting moneys to the
  124  State Treasury if required to comply with a specific
  125  appropriation by operation of law or order by the Governor.
  126         (c)Moneys temporarily transferred under paragraph (b) must
  127  be returned to the reserve as soon as practicable, together with
  128  any interest earned on such moneys while held in the State
  129  Treasury.
  130         (6)(a)The Florida Strategic Cryptocurrency Reserve
  131  Advisory Committee is created to advise the Chief Financial
  132  Officer in the administration and management of the reserve.
  133         (b)The committee shall consist of five members, as
  134  follows:
  135         1.The Chief Financial Officer, who shall serve as chair;
  136  and
  137         2.Four members appointed by the Chief Financial Officer by
  138  October 1, 2026, as follows:
  139         a.Three members with expertise in cryptocurrency
  140  investments; and
  141         b.One member with expertise in digital asset security.
  142         (c)The committee shall advise on matters relating to:
  143         1.The valuation of assets held in the reserve;
  144         2.Prudent investment policies, including investment
  145  objectives and asset allocation standards; and
  146         3.Prudent custody and security practices for the reserve.
  147         (d)Members of the committee shall serve without
  148  compensation but may be reimbursed for per diem and travel
  149  expenses in accordance with s. 112.061, if applicable.
  150         (e)Members appointed by the Chief Financial Officer serve
  151  at the pleasure of the Chief Financial Officer.
  152         (7)Beginning December 31, 2026, and biennially thereafter,
  153  the Chief Financial Officer shall submit a report to the
  154  President of the Senate and the Speaker of the House of
  155  Representatives which includes all of the following:
  156         (a) The amount of cryptocurrency held in the reserve on the
  157  last day of the preceding state fiscal year.
  158         (b) The estimated monetary value of the cryptocurrency held
  159  in the reserve on the last day of the preceding state fiscal
  160  year.
  161         (c) A summary of any changes in the amount and estimated
  162  monetary value of cryptocurrency held in the reserve during the
  163  preceding state fiscal year, disaggregated by cryptocurrency
  164  type.
  165         (d) A description of the actions taken by the Chief
  166  Financial Officer to administer and manage the reserve during
  167  the preceding state fiscal year.
  168         (8)Upon termination of the reserve under s. 215.994(4),
  169  
  170  ================= T I T L E  A M E N D M E N T ================
  171  And the title is amended as follows:
  172         Delete lines 3 - 4
  173  and insert:
  174         Cryptocurrency Reserve; creating s. 215.991, F.S.;
  175         providing a short title; creating s. 215.992, F.S.;
  176         defining terms; creating s. 215.993, F.S.; authorizing