Kansas proposes state Bitcoin and digital assets fund

Kansas proposes a state Bitcoin Reserve Fund, allowing up to 10% of trust assets in Bitcoin ETFs, with the treasurer overseeing digital assets and new rules for unclaimed crypto.

Kansas lawmakers have introduced a bill to establish a state-managed Bitcoin and Digital Assets Reserve Fund, signaling a major step toward integrating cryptocurrencies into public finance. The proposal would permit up to 10% of state trust fund assets to be invested in Bitcoin ETFs, with the state treasurer responsible for managing the digital asset portfolio. The bill also amends unclaimed property laws to recognize digital assets, setting guidelines for their custody, management, and potential sale. Unclaimed digital assets held by custodians like exchanges or banks would be transferred to the state after three years of inactivity, provided owners cannot be reached. The reserve fund would be composed of airdrops, staking rewards, and earned interest. Revenues would go to the state’s general fund, while principal holdings remain intact. This mirrors sovereign wealth fund strategies and highlights Kansas’s ambition to lead in governmental crypto adoption, pending further legislative approval.