Kansas Senator Proposes Bitcoin Reserve Shielded from General Fund Transfers

Kansas Senator Craig Bowser has introduced Senate Bill 352, aimed at creating a state Bitcoin reserve through unclaimed digital assets.

The bill establishes a "Bitcoin and digital assets reserve fund" managed by the Kansas State Treasurer.
Bitcoin is protected from being transferred to the state's general fund, unlike other digital assets, which are subject to a 10% deposit to the general fund.
Unclaimed digital assets must be delivered to qualified custodians within 30 days. These custodians can stake digital assets and receive airdrops.
If assets remain unclaimed after three years, they transfer to the reserve fund.

Context of State Reserve Movements

Kansas follows other states in establishing Bitcoin reserves, with federal efforts expanding since President Trump's executive order in March 2025.
The Kansas approach focuses on custody rather than direct Bitcoin purchases, contrasting with Texas's direct purchase strategy.
The legislation echoes Arizona's HB 2749, which utilizes a similar unclaimed property framework.
To date, three states have enacted such reserve laws, while 17 others are considering them.