Kansas introduces bill to establish Bitcoin and digital assets reserve fund

A Kansas lawmaker has introduced Senate Bill 352 (SB352), which would create a Bitcoin and digital assets reserve funded by staking rewards, airdrops, and interest from unclaimed digital assets held by the state.

The bill, introduced on January 21, 2026, by Senator Craig Bowser, would modernize Kansas’ unclaimed property law to include digital assets and establish a “Bitcoin and Digital Assets Reserve Fund” managed by the state treasurer.

Under the proposal, digital assets would be treated as unclaimed property after three years of no owner activity or communication, at which point custodians such as exchanges or banks would be required to transfer the assets in their native form to the state or a licensed qualified custodian.

The state would be permitted to stake eligible assets while holding them, generating staking rewards, airdrops, and interest, while the original owner retains the right to reclaim the underlying asset at any time.

If the assets remain unclaimed for another three years, all associated staking rewards, airdrops, and interest generated while the state held the asset would automatically flow into the Bitcoin and Digital Assets Reserve Fund, with 10% of non-Bitcoin deposits credited to the general fund and all spending subject to legislative approval.

SB352 builds on earlier Kansas crypto efforts, including tax incentives for blockchain startups. A related bill, SB34, was introduced in January 2025 to allow the Kansas Public Employees Retirement System to invest in Bitcoin ETFs under specific limitations.

The Kansas proposal aligns with similar legislative initiatives in Wyoming and Texas, as well as federal efforts like the BITCOIN Act.