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Kansas Bill Proposes Bitcoin and Digital Assets Reserve Using Unclaimed Property

Lawmakers within the US state of Kansas are weighing new laws that might set up a state-managed Bitcoin and digital belongings reserve funded by unclaimed digital property already held by the state.

Key Takeaways:

  • Kansas is weighing a state-managed Bitcoin reserve funded by unclaimed digital belongings.
  • The proposal avoids direct Bitcoin purchases, relying as an alternative on deserted crypto, airdrops, and staking rewards.
  • The invoice updates state regulation on how unclaimed digital belongings are outlined and managed.

Kansas Senate Bill 352 (SB 352), launched on Wednesday by Senator Craig Bowser, proposes the creation of a “Bitcoin and digital belongings reserve fund” throughout the state treasury.

The fund can be administered by the Kansas state treasurer and would depend on deserted digital belongings slightly than taxpayer-funded cryptocurrency acquisitions.

Kansas Bitcoin Bill To Be Funded by Airdrops, Unclaimed Digital Assets

Under the invoice, the reserve can be constructed from airdrops, staking rewards, and curiosity generated from digital belongings that fall beneath Kansas’ unclaimed property legal guidelines.

These belongings might embrace Bitcoin, cryptocurrencies, and different digital-only belongings which were deemed deserted after homeowners fail to say them inside a legally outlined interval.

Notably, the proposal explicitly avoids direct purchases of Bitcoin by the state. Instead, it displays a broader coverage strategy gaining traction at each state and federal ranges, the place governments search publicity to digital belongings with out shopping for them on the open market.

This mirrors the White House’s plan to ascertain a US Strategic Bitcoin Reserve utilizing forfeited Bitcoin slightly than newly acquired cash.

SB 352 outlines how funds can be allotted as soon as digital belongings enter the reserve. Ten % of every deposit can be transferred to Kansas’ common fund, whereas Bitcoin itself can be excluded from common fund use and retained throughout the reserve.

The remaining belongings would keep beneath the reserve fund’s administration, doubtlessly permitting the state to learn from long-term appreciation or yield.

The invoice additionally introduces amendments to Kansas’ unclaimed property statutes, formally defining phrases similar to “digital belongings” and “airdrops.”

It additional clarifies how the state ought to custody, handle, and account for these belongings as soon as they’re categorized as deserted.

After clearing the Federal and State Affairs Committee, SB 352 was referred on Thursday to the Senate Committee on Financial Institutions and Insurance, the place it’s going to face additional evaluate.

Kansas Bitcoin Reserve Proposal Follows Pension Fund ETF Bill

The proposal follows earlier digital asset initiatives in Kansas.

Senate Bill 34, launched in January 2025, would enable the Kansas Public Employees Retirement System to allocate up to 10% of its portfolio to identify Bitcoin exchange-traded funds. That invoice stays into account in the identical committee.

Kansas is certainly one of a number of US states exploring crypto-related laws, together with reserve ideas, regulatory job forces, and restricted funding frameworks.

At the federal stage, the administration of President Donald Trump has reiterated plans to maneuver ahead with a nationwide Bitcoin reserve funded via seized belongings.

A senior White House official mentioned in January that the initiative stays a precedence.

Internationally, countries such as El Salvador and Bhutan have already taken extra direct approaches, incorporating Bitcoin into nationwide methods via state holdings, mining initiatives, and improvement initiatives tied to digital belongings.

The submit Kansas Bill Proposes Bitcoin and Digital Assets Reserve Using Unclaimed Property appeared first on Cryptonews.

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