Kansas Moves to Create Bitcoin and Digital Assets Reserve Fund

Highlights:

• Kansas lawmakers propose a state Bitcoin and Digital Assets Reserve Fund for planning.
• The proposal directs 10% of non-BTC digital assets into the general fund under legislative approval.
• Legislation allows staking and airdrops, enabling Kansas to steadily grow its cryptocurrency holdings.

Kansas has entered a new stage in public finance after lawmakers introduced a bill to create a state-managed Bitcoin and Digital Assets Reserve Fund. This step shows growing interest in digital assets and long-term planning, but it also brings some tension for traditional systems.

On January 22, State Senator Craig Bowser introduced Senate Bill 352 to update unclaimed property rules. The bill would give digital assets like cryptocurrencies legal status and set clear rules for holding, managing, and selling them under state control. If approved, the Kansas State Treasurer would oversee the fund. This would help keep records accurate, protect asset safety, and follow public fund rules, while keeping digital assets separate from the regular budget.

BREAKING: Kansas Senator Craig Bowser introduces bill to create a Strategic Bitcoin Reserve 🇺🇸 pic.twitter.com/WeQjtrc3Vi

— Bitcoin Magazine (@BitcoinMagazine) January 22, 2026

Kansas Sets Clear Rules for Unclaimed Digital Assets

A key part of the bill explains how unclaimed digital assets would move into state control. The transfer would happen after three years of no activity, once written or electronic messages can no longer reach the owner. Any owner action, even logging into an account, would reset the timer at once.

The bill applies only to the custodial digital assets of licensed holders such as exchanges, banks, trust companies, and licensed custodians. It does not apply to personal self-held wallets. This alleviates privacy concerns and keeps the spotlight on licensed asset managers. Unlike in normal unclaimed property laws, digital assets can remain in their original digital form rather than being sold immediately. This prevents market pressure from large sales to cash.

Staking, Bitcoin, and Spending Rules

The new regulation allows the approved custodian to stake chosen digital assets and claim airdrops based on the guidance of the treasurer. The rewards reaped after three years would go to the reserve fund. This would help the fund to grow in a slow manner without using public funds, but it also introduces a hint of tension regarding control.

A key rule in the bill stops Bitcoin from entering the state’s general fund. Kansas would keep all Bitcoin strictly in the reserve. In contrast, lawmakers could allow up to 10% of non-Bitcoin digital asset deposits to be added to the general fund.

Supporters say this setup treats Bitcoin as a long-term reserve, not a short-term revenue source. Other digital assets could help fund general spending, but Bitcoin stays untouched to act as a hedge against inflation. The bill also sets clear rules for selling assets. Cryptocurrencies listed on major exchanges must sell at market prices, while assets without active listings can use fair, reasonable methods. This approach aims to limit market disruption and maintain transparency.

Kansas would be the latest state to explore the use of Bitcoin reserves if the measure is approved. Several states have been exploring the use of Bitcoin reserves, and this is a trend that has been on the rise. Recently, Rhode Island lawmakers introduced a bill to temporarily exempt small Bitcoin transactions from state income tax.

JUST IN: Rhode Island introduced a state income tax exemption bill for small-scale Bitcoin transactions.

Make Bitcoin everyday money 🙌 pic.twitter.com/oKVAUVoXsz

— Bitcoin Magazine (@BitcoinMagazine) January 14, 2026