Kansas lawmakers have introduced Senate Bill 352 proposing a state-managed reserve of bitcoin and digital assets.
The proposal outlines a framework that avoids direct cryptocurrency purchases using public funds.
Instead, the reserve would be capitalised through abandoned or unclaimed digital assets already under state control.
These assets could include dormant wallets, staking rewards, airdrops, and interest generated over time.
Once classified as unclaimed property, the digital assets would be transferred into a newly created state fund.
Oversight of the reserve would fall under the authority of the Kansas State Treasurer.
The bill specifies that ten percent of non-bitcoin digital deposits would be directed to the state general fund.
Bitcoin holdings would be treated differently and stored in a separate, dedicated reserve compartment.
Lawmakers say this structure allows exposure to bitcoin without risking taxpayer money.
The bill also amends existing Kansas statutes to update the legal definition of digital assets.
Supporters argue this legal clarity is essential for long-term governance and accountability.
Senate Bill 352 forms part of a broader effort to modernise Kansas’ financial asset management.
A separate provision would allow up to ten percent of certain public funds to be invested in Bitcoin exchange-traded funds.
This ETF proposal signals a growing acceptance of regulated crypto exposure within public finance.
Financial analysts note that the approach could improve management of inactive or abandoned holdings.
Critics have raised concerns around custody arrangements, governance safeguards, and private key security.
Regulatory questions also remain around valuation, auditing standards, and long-term risk controls.
Supporters say the model mirrors how states historically approached alternative stores of value like gold.
By embedding bitcoin into a public budgeting framework, Kansas may influence other US states.
Policymakers describe the initiative as experimental rather than a full endorsement of cryptocurrency markets.
The bill positions bitcoin as a strategic resource rather than a speculative asset.
Observers say the proposal reflects growing institutional confidence in digital assets.
It remains unclear whether similar legislation will gain traction beyond Kansas.
For now, the state has outlined a cautious governance model with national implications.