Kansas Wants to Create a Public Reserve of Bitcoin and Digital Assets
Kansas has just launched an unprecedented bet: to create a public reserve in bitcoin without directly buying cryptocurrency. A bill proposes to use abandoned digital assets to build a strategic fund. An innovative idea that could inspire other US states!
In brief
- Kansas wants to create a public bitcoin reserve funded by abandoned cryptos and not purchased.
- The bill also plans to invest up to 10% in state Bitcoin ETFs.
Bitcoin at the heart of a state public reserve
Kansas does not plan to buy bitcoin, but to receive it via airdrops, staking rewards, or interest generated from wallets left abandoned. Once considered unclaimed, these digital assets are integrated into a new state fund placed under the responsibility of the Treasurer.
The bill SB 352 states that 10% of digital deposits must fund the state general fund. An exception applies to bitcoin, which will be held in a separate compartment.
The text also changes the legal definition of crypto assets in Kansas statutes. The goal? To position the public bitcoin reserve as a strategic tool, without using taxpayers’ money.
A pioneering crypto law and an opening toward Bitcoin ETFs
The SB 352 bill is part of a larger framework in which Kansas also aims to authorize investing up to 10% of its public funds in Bitcoin ETFs. This proposal reflects a willingness to fully integrate cryptocurrency into the state’s budget strategy.
The implications remain significant. On one hand, the measure could enable better management of inactive holdings. On the other, it raises financial regulation questions (notably on fund custody, governance, and private key security).
This innovation also raises hopes for wider institutional investment. By placing bitcoin within a public budget logic, Kansas is indeed preparing a potential shift: where US states would treat BTC as an alternative store of value, similar to gold.
In any case, Kansas outlines a governance model where bitcoin establishes itself as a strategic resource. It remains to be seen whether other states will cross this line or if this project will remain a political exception.
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My name is Ariela, and I am 31 years old. I have been working in the field of web writing for 7 years now. I only discovered trading and cryptocurrency a few years ago, but it is a universe that greatly interests me. The topics covered on the platform allow me to learn more. A singer in my spare time, I also cultivate a great passion for music and reading (and animals!)
The views, thoughts, and opinions expressed in this article belong solely to the author, and should not be taken as investment advice. Do your own research before taking any investment decisions.