Florida, Arizona Pull Back on State Bitcoin Reserves

Florida has withdrawn two major bills, House Bill 487 and Senate Bill 550, that would have permitted public investment in Bitcoin, mirroring similar legislative setbacks in Arizona where Governor Katie Hobbs recently vetoed a Bitcoin reserve bill. These actions mark a shift as more US states reconsider or abandon plans for state-level crypto reserves, with only 19 states still weighing such proposals. The legislative reversals in both Arizona and Florida have triggered a notable decline in Bitcoin's price and increased trading activity. Concerns about the volatility and untested nature of digital assets are prompting bipartisan skepticism and caution regarding public fund investments. Despite these setbacks, advocates like Arizona Senator Wendy Rogers remain committed to reintroducing similar measures in the future. The developments reflect a broader national hesitancy toward integrating cryptocurrencies into state investment strategies.