Lawmakers in Kansas are reviewing a legislative proposal aimed at establishing a state-managed reserve for Bitcoin and digital assets. This reserve would be funded through unclaimed assets rather than by directly purchasing cryptocurrencies.
Senate Bill 352, introduced by Senator Craig Bowser on Wednesday, seeks to create a Bitcoin and digital assets reserve fund within the state treasury, overseen by the state treasurer.
The proposed fund is set to consist of airdrops, staking rewards, and interest accrued from abandoned digital assets in accordance with Kansas’ unclaimed property laws.
Instead of buying Bitcoin (BTC) directly, the state would accept various cryptocurrencies and other digital-only assets, aligning with the federal government’s strategy to build a Strategic Bitcoin Reserve through forfeited assets this way rather than creating new market demand.
According to the bill, 10% of each digital asset deposit in the reserve must go to the state’s general fund, but Bitcoin itself will not be included in the general fund allocations.
The bill also revises Kansas laws pertaining to unclaimed properties, clarifying the definitions of digital assets and airdrops, and outlining how these items are handled when they are regarded as abandoned.
Following the transition from the Federal and State Affairs Committee, SB 352 was directed to the Committee on Financial Institutions and Insurance.
This new proposal comes on the heels of previous Kansas initiatives, including Senate Bill 34, which intended to permit the Kansas Public Employees Retirement System to allocate up to 10% of its assets into Bitcoin exchange-traded funds (ETFs), initially proposed in January 2025 and still awaiting action in the Senate Committee on Financial Institutions and Insurance.
Kansas joins a select group of states actively pursuing Bitcoin-related legislation, exploring various strategies from strategic reserves to task forces focused on digital asset regulations.
On a federal scale, from President Donald Trump’s administration’s perspective, plans are progressing toward establishing a strategic reserve funded by forfeited Bitcoin rather than new taxpayer capital purchases.
Related: Obscure Laws Stall Bitcoin Reserve: Insights from White House Crypto Council
Moreover, other countries like El Salvador and Bhutan have embraced Bitcoin in their national strategies through initiatives such as state-linked mining and direct cryptocurrency holdings.
