Kansas could soon create a state-run Bitcoin and digital assets reserve, without buying crypto directly from the market.
A newly proposed bill would allow the state to build a reserve using abandoned digital assets like Bitcoin already in government custody, signaling a cautious but notable step toward crypto integration.
How the Bitcoin Reserve Would Work
Kansas Senate Bill 352, introduced by Senator Craig Bowser, proposes setting up a “Bitcoin and digital assets reserve fund” within the state treasury. The state treasurer would manage the fund and would be capitalized with assets collected under Kansas’ unclaimed property laws.
Instead of purchasing Bitcoin outright, the reserve would grow from sources such as:
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Airdropped tokens
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Staking rewards
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Interest earned on abandoned digital assets
The bill applies not just to Bitcoin but to a broader category of digital-only assets.
This approach mirrors the federal government’s stance on Bitcoin reserves, where forfeited or seized assets are used rather than taxpayer-funded purchases.
Limits on State Use of Bitcoin
Under the proposal, Kansas would divert 10% of every digital asset deposit into the state’s general fund. However, BTC itself would remain excluded from general fund spending, preserving it strictly as a reserve asset.
LATEST: 🇺🇸 A Kansas lawmaker has introduced a bill to establish a state Bitcoin reserve funded through unclaimed crypto assets, airdrops and staking rewards rather than direct purchases. pic.twitter.com/H4W5R35IEG
— CoinMarketCap (@CoinMarketCap) January 24, 2026
The bill also updates existing unclaimed property laws by formally defining digital assets and airdrops, and outlining when they are considered abandoned.
SB 352 has now been sent to the Senate Committee on Financial Institutions and Insurance for review.
Part of a Broader Crypto Push in Kansas
The proposal builds on earlier crypto-related legislation in the state. Another bill, Senate Bill 34, would allow the Kansas Public Employees Retirement System to invest up to 10% of its portfolio in spot Bitcoin ETFs. That measure was introduced in January 2025 and is still under committee consideration.
States Test the Waters on Bitcoin Policy
Kansas joins a growing list of US states experimenting with Bitcoin-focused legislation, ranging from reserve strategies to limited institutional exposure through ETFs.
At the national level, the US government has reiterated plans for a Strategic Bitcoin Reserve, funded through forfeited assets rather than market purchases.
Beyond the US, countries like El Salvador and Bhutan have gone further, integrating BTC into national development strategies through direct holdings, mining initiatives, and long-term infrastructure projects.
Together, these moves suggest governments are exploring ways to benefit from BTC, without fully committing to open-market exposure.
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This articles is written by : Nermeen Nabil Khear Abdelmalak
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