Lawmakers in Kansas are considering a new bill that would allow the state to build a Bitcoin and digital assets reserve — without spending taxpayer money.
Instead of buying crypto outright, the proposal would use digital assets the state already controls, including abandoned crypto, airdrops, staking rewards, and interest tied to unclaimed property.
What the bill would do
Kansas Senate Bill 352, introduced Wednesday by Senator Craig Bowser, would create a “Bitcoin and digital assets reserve fund” inside the state treasury. The fund would be managed by the state treasurer and funded entirely through unclaimed digital property already held by Kansas.
That means no direct Bitcoin purchases. Assets would only enter the reserve after being deemed abandoned under state unclaimed property laws — typically when owners fail to claim them within a set time period.
The bill reflects a growing policy trend where governments seek exposure to digital assets without entering the market as buyers. A similar approach is being discussed at the federal level, where the White House has proposed a US Strategic Bitcoin Reserve built from seized assets rather than newly acquired coins.
How the reserve would work
Under SB 352, once digital assets are added to the reserve, 10% of each deposit would be transferred to Kansas’ general fund. Bitcoin itself, however, would be kept separate and could not be used for general spending.
The remaining assets would stay in the reserve, potentially allowing the state to benefit from long-term appreciation or yield over time.
The bill also updates Kansas’ unclaimed property laws to better reflect how digital assets work. It formally defines terms like “digital assets” and “airdrops,” and spells out how the state should custody, manage, and account for crypto once it is classified as abandoned.
What happens next
After passing through the Federal and State Affairs Committee, the bill was sent Thursday to the Senate Committee on Financial Institutions and Insurance for further review.
The proposal follows another crypto-related bill introduced earlier this year. Senate Bill 34 would allow the Kansas Public Employees Retirement System to invest up to 10% of its portfolio in spot Bitcoin ETFs. That legislation is still under consideration by the same committee.
Kansas is one of several US states testing the waters on crypto policy, alongside efforts to create digital asset reserves, regulatory task forces, and limited investment frameworks.
At the federal level, the Trump administration has reiterated plans to pursue a national Bitcoin reserve funded through seized assets, calling the initiative a priority earlier this year.
Beyond the US, countries like El Salvador and Bhutan have taken a more hands-on approach — directly holding Bitcoin, supporting mining initiatives, and weaving digital assets into broader national strategies.
