Kansas lawmakers are reviewing a new proposal that would create a state-managed Bitcoin and digital assets reserve — without requiring the state to directly buy cryptocurrency. Instead, the fund would be built using unclaimed digital assets and rewards generated from them.
The proposal, Senate Bill 352, was introduced by Senator Craig Bowser and would place the reserve under the management of the Kansas state treasurer. If approved, the fund would hold Bitcoin, cryptocurrencies, and other digital-only assets obtained through unclaimed property laws.
Rather than using taxpayer funds, the reserve would be funded through abandoned digital assets, airdrops, staking rewards, and interest earned on those assets. This approach closely mirrors the federal government’s plan to establish a US Strategic Bitcoin Reserve using forfeited Bitcoin rather than purchasing it on the open market.
Under the bill, 10% of digital assets deposited into the reserve would be transferred to Kansas’ general fund. However, Bitcoin itself would be excluded from the general fund and kept solely within the reserve.
How Senate Bill 352 Would Handle Digital Assets
Senate Bill 352 also updates Kansas’ unclaimed property statutes by formally defining “digital assets” and “airdrops.” It outlines how the state should handle cryptocurrencies and related assets once they are deemed abandoned under existing laws.
The bill allows the state to hold and manage these assets rather than liquidating them immediately. This could enable Kansas to benefit from long-term appreciation, staking income, and other blockchain-based rewards.
After advancing from the Federal and State Affairs Committee, the bill was referred to the Senate Committee on Financial Institutions and Insurance, where it will face further review.
This proposal follows earlier crypto-related efforts in Kansas, including Senate Bill 34. That bill would allow the Kansas Public Employees Retirement System to allocate up to 10% of its assets to spot Bitcoin exchange-traded funds (ETFs). SB 34 was introduced in January 2025 and is still under committee consideration.
Kansas Joins Growing State-Level Bitcoin Efforts
Kansas is one of several US states exploring legislation related to Bitcoin and digital assets. Across the country, lawmakers are considering measures ranging from strategic crypto reserves to limited investment allocations and regulatory task forces.
At the federal level, the administration of President Donald Trump has confirmed plans to move forward with a Strategic Bitcoin Reserve and a broader digital asset stockpile. According to a senior White House official, the initiative would rely on forfeited Bitcoin rather than new taxpayer-funded purchases.
Internationally, countries such as El Salvador and Bhutan have already integrated Bitcoin into their national strategies. These efforts include direct government holdings, state-linked mining operations, and the use of Bitcoin to support long-term development projects and special economic zones.
