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Kansas lawmakers are currently evaluating a new legislative proposal, Senate Bill 352, which aims to establish a state-managed Bitcoin and digital assets reserve fund. Introduced by Senator Craig Bowser on Wednesday, the bill seeks to place this reserve under the direct administration of the state treasurer within the Kansas treasury. Unlike traditional investment funds that might require the state to engage in direct purchases of cryptocurrency, this specific initiative would be funded primarily through unclaimed property. This approach ensures that the state is not using taxpayer funds for open-market acquisitions of Bitcoin or other digital assets. Instead, the reserve would accumulate assets that have been classified as abandoned under state law.
The proposed legislation explicitly identifies that the fund would consist of various digital sources, including airdrops, staking rewards, and interest accrued on abandoned digital assets. By focusing on these specific channels, the state aims to build a stockpile of digital-only assets and cryptocurrencies without initiating the purchase of Bitcoin on the open market. This strategy reflects a broader legislative interest in integrating digital assets into state-level fiscal structures while utilizing existing legal frameworks regarding unclaimed property. Under the bill, the state treasurer would be the primary official responsible for the administration and oversight of these assets once they are deposited into the treasury.
Context
The introduction of Senate Bill 352 represents a continuation of legislative efforts in Kansas to engage with the digital asset sector. Prior to this bill, Kansas lawmakers introduced Senate Bill 34 in January 2025. That earlier proposal sought to permit the Kansas Public Employees Retirement System to allocate a specific portion of its assets—up to 10%—into spot Bitcoin exchange-traded funds (ETFs). While Senate Bill 34 remains under consideration within the Senate Committee on Financial Institutions and Insurance, the new SB 352 has already begun its legislative journey. On Thursday, SB 352 was referred to the same committee after being moved from the Federal and State Affairs Committee.
Beyond these specific bills, Kansas is part of a growing trend among various U.S. states where lawmakers are increasingly proposing Bitcoin or cryptocurrency-focused legislation. These efforts range from the creation of task forces to the development of strategic reserves and controlled allocations for state-linked funds. The move to define specific terms within the law is also a key component of this context. SB 352 includes amendments to Kansas’ existing unclaimed property statutes, providing formal definitions for “digital assets” and “airdrops” while outlining how the state should treat such items when they are officially deemed abandoned by their original owners. This ensures legal clarity for the state’s future digital asset management and provides a framework for handling unclaimed digital wealth.
Impact
If passed, Senate Bill 352 would introduce a structured mechanism for the state to benefit from the growing digital asset economy through its treasury. A significant provision of the bill dictates that 10% of every deposit of digital assets into the reserve fund must be credited to the state’s general fund. This requirement ensures a consistent flow of value into the state’s main operating fund as the reserve grows. However, the legislation specifies that the actual Bitcoin held within the reserve would remain separate from the general fund. The administration of these assets would fall under the state treasurer, who would be responsible for managing the diverse types of assets entering the fund.
These assets include not only Bitcoin but also staking rewards and various “digital-only assets.” By leveraging unclaimed property and the rewards generated by those assets—such as interest and airdrops—Kansas would effectively create a new class of state-held wealth. The impact of such a law would extend to how financial institutions and individuals interact with the state’s unclaimed property division, as the definitions of “digital assets” and the procedures for handling abandoned crypto would be clearly codified. This legislative framework provides a blueprint for how a state can accumulate digital wealth without the volatility associated with direct market purchases. It allows for the accumulation of rewards that would otherwise remain dormant in the digital ecosystem.
Outlook
The proposal in Kansas mirrors a broader movement at both the federal and international levels toward the establishment of digital asset reserves. At the federal level, the administration of U.S. President Donald Trump has signaled its intent to move forward with a Strategic Bitcoin reserve and digital asset stockpile. Much like the Kansas proposal’s reliance on unclaimed property, the federal plan envisions using forfeited Bitcoin rather than new taxpayer-funded purchases to build its reserve. A senior White House official confirmed on January 16 that the creation of this Bitcoin reserve remains a primary priority for the administration. This alignment between state and federal interests suggests a shifting regulatory and fiscal landscape for digital assets in the United States.
Internationally, the concept of a national or state-level Bitcoin strategy is already being implemented by countries such as El Salvador and Bhutan. These nations have incorporated Bitcoin into their national strategies through various means, including direct holdings and state-linked mining operations. Furthermore, some countries are utilizing Bitcoin to back long-term development projects and special economic zones. As Kansas lawmakers deliberate on SB 352 and its predecessor SB 34, the state’s actions will be viewed within this global and national context of increasing digital asset adoption by government entities looking to diversify their strategic holdings and leverage digital technology for state-level financial management.
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