Kansas is weighing a state-level Bitcoin and digital asset reserve fund, but the proposal does not rely on direct bitcoin purchases. Under SB 352, the fund would be financed only by airdrop proceeds and staking rewards generated from digital assets classified as abandoned under state law.
The bill was introduced by Republican Senator Craig Bowser and sent to the Senate Committee on Financial Institutions and Insurance one day later. It would create the reserve inside the state treasury, while any spending from the fund would still require a separate appropriations bill.
How abandoned digital assets would feed the reserve
SB 352 also revises the rules for when a digital asset can be treated as abandoned under Kansas law. If written communication is returned with an “address not found” result and the property remains unclaimed for three years, the asset may be designated abandoned. The same three-year clock applies when the owner shows no indication of interest, including no account access or transaction activity.
That period is described in the source as 40% shorter than the five-year standard used for demand or savings deposits. Once reported assets are taken over by a state-appointed administrator, they must be held by a qualified custodian. That custodian is allowed to stake the assets. If the property remains unclaimed for another three years while under state supervision, any airdrops and staking rewards generated during that period would be transferred into the proposed reserve fund.
Separate treatment for bitcoin and other digital assets
The bill draws a clear line between bitcoin and other tokens. It bars investment of bitcoin into the state’s general fund. For other digital asset investments, 10% of each investment must be credited to the general fund.
This makes the Kansas approach different from state reserve proposals built around direct market purchases. The bill identifies no funding source beyond secondary income tied to abandoned assets, giving the plan a narrower structure centered on yield rather than initial acquisition.
Bowser also filed a crypto campaign donations bill
Craig Bowser has separately introduced SB 310, a measure dealing with cryptocurrency in campaign finance. Under that proposal, crypto donations would have to be processed through a registered U.S.-based payment processor and comply with KYC requirements. Donations must be converted into U.S. dollars and deposited into campaign accounts within three business days, and campaign committees would be barred from holding crypto as campaign assets.
The two bills address different channels of digital asset use. One focuses on state treasury reserves, the other on campaign finance controls. Together they show Kansas lawmakers examining crypto through both custody and compliance rules.
State-level bitcoin reserve efforts are taking different forms
The Kansas proposal arrives as U.S. states continue testing reserve frameworks. The source notes that New Hampshire Governor Chris Sununu signed the Strategic Bitcoin Reserve Act on May 6, 2025, setting limits tied to digital assets valued above $500 billion and capping reserves at 5%. In Texas, legislation signed by Governor Greg Abbott in June 2025 authorized the holding and investment of bitcoin.
Arizona’s HB 2749, enacted in May 2025, removed mandatory sales of unclaimed or seized crypto, creating a basis for reserve treatment. For the 2026 legislative sessions, similar proposals are listed in Florida and West Virginia. In West Virginia, SB143 would allow up to 10% of state funds to be allocated to bitcoin, precious metals, and stablecoins. Pennsylvania has discussed a bitcoin rights measure linked to reserve efforts, but full reserve legislation has not advanced. Efforts in Montana, Wyoming, and other states have also stalled at the legislative stage.