A bill aiming to establish a “Bitcoin and digital assets reserve” in the state treasury in Kansas was brought to the agenda of the Senate’s Financial Institutions and Insurance Committee in its first week. Senate Bill 352 (SB 352), introduced by Republican Senator Craig Bowser, was referred to committee on Thursday, a day after its introduction. Instead of direct Bitcoin purchases, the bill envisages a separate fund that will be financed with airdrop and staking revenues arising from digital assets that are deemed “unowned” under Kansas law. Spending authority will only be possible with a separate appropriation law.
Kansas Bill Establishes Reserve with “Orphaned Asset” Returns
SB 352 regulates the creation of a “Bitcoin and digital assets reserve fund” within the state treasury. The critical point that distinguishes it from other state initiatives is that the fund will be expanded only with ancillary revenues arising from orphaned digital assets. No source is identified other than AirDrop distributions and staking rewards.
The bill also clarifies the conditions under which digital assets will be deemed “abandoned” with the amendment to the Unentrusted Property Law. If the written communication cannot be delivered to the owners and is returned with a reason such as “address not found”, the asset is considered abandoned after three years. The same three-year period can also begin to run if the owner does not demonstrate an “act of ownership interest” such as account access or transaction. The period is 40 percent shorter than the five-year window applicable to demand or savings deposits.
The asset, which is reported to the state and received by the manager, is placed under the control of a qualified custody institution. The custodian is allowed to generate rewards by staking. If the asset is not claimed for three years under state supervision, the resulting airdrop and staking rewards are transferred to the new reserve fund. The bill also prohibits deposits of bitcoin into the state general fund; It requires that 10 percent for each investment in other digital assets be credited to the general fund.
Campaign Donations and the Meaning of Interstate Racing
Craig Bowser also introduced SB 310 on January 12, aiming to regulate cryptocurrencies within the framework of campaign donations. Under SB 310, crypto donations must be processed through a US-based and registered payment processor with identity verification (KYC) rules. While donations are required to be converted into US dollars and deposited into the campaign account within three business days, committees are prohibited from holding crypto as a campaign asset.
The Kansas move coincides with the period when the “Bitcoin reserve” approach began to spread at the state level. New Hampshire enacted the Strategic Bitcoin Reserve law on May 6, 2025, when Governor Chris Sununu signed HB 302; It defined digital assets with a market value over $500 billion and a limit not to exceed 5 percent of the total reserve. Texas authorized the treasury to hold and invest in bitcoin with the regulation signed by Governor Greg Abbott in June 2025. HB 2749 in Arizona, on the other hand, created a de facto reserve floor by removing the mandatory sale of unclaimed or seized crypto in May 2025.
Similar bills are on the agenda in Florida and West Virginia for the 2026 sessions; It is reported that SB143 in West Virginia opens the door to allocating up to 10 percent of state funds to bitcoin, precious metals and stablecoins. Although there has been talk of a “bitcoin rights” bill and a reserve initiative in Pennsylvania, comprehensive reserve legislation has not made progress; Trials in Montana, Wyoming and other states failed to pass the legalization stage.
