Lawmakers in Kansas are weighing a proposal that would create a state-managed Bitcoin and digital assets reserve funded through unclaimed property, rather than direct purchases on the open market. The move would place Kansas among a growing list of US states exploring ways to formally integrate digital assets into public finance frameworks.
The proposal, Senate Bill 352, was introduced this week by Craig Bowser. It would establish a “Bitcoin and digital assets reserve fund” within the state treasury, overseen by the state treasurer. Unlike other reserve concepts, the fund would be built from airdrops, staking rewards and interest generated from abandoned digital assets already held by the state under unclaimed property laws.
Earlier coverage: Bitcoin futures open interest rebounds in January as traders cautiously re-enter risk
Bitcoin and Digital Assets Reserve Fund. Source: Kansas Legislature
A reserve built without buying Bitcoin
Under the bill, Kansas would not purchase Bitcoin directly. Instead, the reserve would accumulate crypto and other digital-only assets that are deemed abandoned, echoing the White House’s approach of funding a federal strategic Bitcoin reserve using forfeited assets rather than taxpayer-funded purchases.
The legislation specifies that 10% of each digital asset deposit into the reserve must be transferred to the state’s general fund, while Bitcoin itself would be excluded from general fund use. The bill also updates Kansas’ unclaimed property statutes by formally defining digital assets and airdrops, and outlining how they are handled once classified as abandoned.
SB 352 was referred to the Committee on Financial Institutions and Insurance after clearing the Federal and State Affairs Committee, marking an early step in the legislative process.
Part of a broader push in Kansas and beyond
The proposal follows earlier efforts in Kansas to engage with digital assets. Senate Bill 34, introduced in January 2025, would allow the Kansas Public Employees Retirement System to allocate up to 10% of its assets to spot Bitcoin exchange-traded funds. That bill remains under review in the same committee.
Kansas is not alone. Several US states are testing Bitcoin-related legislation, ranging from reserve frameworks to task forces and limited allocations to crypto investment products. At the federal level, the administration of Donald Trump has reiterated plans to establish a Strategic Bitcoin Reserve and broader digital asset stockpile funded through forfeitures.
Internationally, countries such as El Salvador and Bhutan have already integrated Bitcoin into national strategies, using direct holdings and state-linked mining operations to support long-term development goals.