On a recent Thursday, Kansas Senator Craig Bowser unveiled new legislation designed to establish a significant Strategic Bitcoin and cryptocurrency reserve for the state of Kansas.

This initiative, categorized as Bill 352, aims to allow the Kansas Public Employees Retirement System (KPERS) to invest as much as 10% of its total portfolio in Bitcoin exchange-traded funds (ETFs).

Kansas Bitcoin Initiative

According to the framework outlined in the bill, KPERS would have the flexibility to retain its Bitcoin ETF investments even if their valuation exceeds the 10% allocation limit. This retention would only change if the board believes divesting would benefit the stakeholders better.

Should this legislation pass, the KPERS board must perform an annual assessment of its investment strategies, presenting this evaluation to the governor for scrutiny and transparency.

Kansas joins a burgeoning list of U.S. states contemplating Bitcoin as a crucial financial asset, spurred by a more favorable regulatory climate that emerged during previous administrations.

Trends in US States Adopting Crypto Reserves

Texas set a significant precedent in November by integrating cryptocurrency into its state treasury, acquiring $10 million in Bitcoin.

North Dakota is now evaluating BTC as a viable option to combat inflationary pressures. Additionally, Oklahoma is moving forward too, with Senator Dusty Deevers proposing the Bitcoin Freedom Act.

Recently, Tennessee put forward HB1695, a bill aimed at forming its own Strategic Bitcoin Reserve. In another development, West Virginia presented Senate Bill 143, which seeks to dedicate 10% of select state funds to a cryptocurrency reserve. 

Missouri is also making strides by advancing House Bill 2080, which aims to set up a Strategic Bitcoin Reserve Fund. This legislation has successfully completed its second reading and is progressing through the state House for further discussions.

Image sourced from DALL-E, with data visuals from TradingView.com