Kansas Eyes Bitcoin Reserve Fund Through Unclaimed Property Law

Kansas lawmakers are considering new legislation that would formally bring Bitcoin and other digital assets under state management.

Specifically, the proposal aims to establish a government-controlled reserve fund using cryptocurrency that enters state possession under laws governing unclaimed property.

Key Points

• State Senator Craig Bowser introduced Senate Bill 352.
• The bill proposes a Bitcoin and Digital Assets Reserve Fund, with oversight by the Kansas State Treasurer.
• 10% of digital asset deposits would be credited to the state general fund, except for Bitcoin.
• The legislation updates Kansas’ unclaimed property laws to include digital assets.

Senate Bill 352 Introduced

The proposal, introduced on Thursday as Senate Bill 352, was put forward by State Senator Craig Bowser, according to legislative records. The bill establishes a Bitcoin and Digital Assets Reserve Fund to hold eligible digital assets.

If the measure is approved, responsibility for overseeing the fund would fall to the Kansas State Treasurer, giving the office direct authority over custody and administration.

Additionally, the bill establishes specific guidelines for the handling of digital assets. Under the proposal, 10% of each digital asset deposit is credited to the state general fund, subject to legislative appropriation.

However, the bill treats Bitcoin differently. Specifically, its language explicitly prevents Bitcoin from being transferred into the general fund, thus ensuring it remains within the reserve structure.

Updating Unclaimed Property Laws

The legislation’s primary focus is not investment strategy, but legal clarity. It updates Kansas’ unclaimed property laws to explicitly include digital assets, aligning them with existing rules on abandoned property.

By doing so, the bill outlines how certain custodial crypto holdings may be deemed abandoned and transferred to the state when no rightful owner comes forward.

This approach places Kansas among a growing number of states examining how to manage Bitcoin in the public sector. During 2025, lawmakers in Oklahoma, Utah, and Arizona advanced similar proposals tied to state finances and treasury operations.

Together, these efforts have helped accelerate nationwide discussions around Bitcoin’s role in government-held reserves.

Federal Actions Provide Additional Context

Momentum around government-held Bitcoin has also emerged at the federal level. In March 2025, President Donald Trump signed an executive order establishing a U.S. Strategic Bitcoin Reserve. The order directed federal agencies to retain Bitcoin seized in criminal and civil cases rather than liquidating it through auctions.

As of this writing, the U.S. government holds approximately 198,012 Bitcoin worth more than $17 billion.

Bitcoin’s growing policy relevance reflects its expanding scale and influence. With a market capitalization exceeding $1.7 trillion, it remains the world’s largest cryptocurrency and continues to attract legislative attention.

That interest extended further in November 2025, when Representative Warren Davidson of Ohio introduced the Bitcoin for America Act. The proposal would allow Americans to pay federal taxes in Bitcoin and channel those funds into a national reserve.

Measured, Custody-Focused Proposal

Despite nationwide enthusiasm for Bitcoin reserves, Kansas’ proposal adopts a measured stance. Senate Bill 352 does not aim to deploy Bitcoin as a treasury investment. Instead, it concentrates on ownership, custody, and legal responsibility.

If enacted, the legislation would represent a meaningful step toward defining how Kansas manages digital assets that already come into state possession, providing clarity in an area of law that continues to evolve.