Kansas Unveils Plan for a Bitcoin Reserve Fund Under State Treasury Control

TLDR

• Kansas proposes a regulated Bitcoin reserve to manage unclaimed digital assets
• New bill defines custody, staking, and reserve rules for state-held Bitcoin
• Kansas positions Bitcoin as a long-term reserve, not a revenue source
• Senate Bill 352 outlines strict custody and abandonment procedures for Bitcoin
• Kansas aligns with national trends in regulated digital asset governance

Kansas introduced new legislation that outlines a formal plan for a Bitcoin Reserve Fund under state management. The measure aims to update unclaimed property laws and bring Bitcoin into a regulated framework, and the keyword Bitcoin anchors the proposal. Kansas presents this plan as lawmakers expand governance structures for digital assets across the United States.

Bitcoin Reserve Framework Gains Legislative Structure

Kansas advanced Senate Bill 352 to define how the state will manage unclaimed Bitcoin under treasury oversight. The proposal creates a Bitcoin and Digital Assets Reserve Fund, and it directs the Kansas State Treasurer to manage custody. The bill outlines strict operational rules that ensure Bitcoin remains within the reserve.

The legislation states that 10% of each eligible digital asset deposit enters the general fund, but Bitcoin remains excluded. Kansas positions Bitcoin as a long-term reserve asset rather than a short-term revenue source, and this distinction strengthens the measure. The bill clarifies custody duties and establishes limits on fund transfers.

Kansas also updates unclaimed property laws to cover digital assets, and the move supports a unified framework. The bill includes definitions for custodial digital assets, which help determine when such assets may be abandoned. Kansas aims to maintain Bitcoin in native form rather than liquidating it immediately.

Digital Asset Custody Rules Expand Across State Operations

The proposal regulates how custodians transfer digital assets to Kansas after three years of inactivity, and it defines abandonment procedures. The abandonment period begins after undeliverable communication, and any account login resets the clock. This process ensures Bitcoin enters state possession only under clear statutory rules.

Kansas authorizes its qualified custodian to stake digital assets and the resulting rewards enter the reserve fund. The measure includes airdrops within this framework. Kansas builds a structure that accumulates digital assets over time.

Several states explored similar efforts during 2025 and Kansas follows this trend with its measured approach. Kansas focuses on legal clarity instead of direct investment, and it avoids market-driven strategies. Bitcoin appears in a more administrative role that aligns with existing state functions.

National Context Strengthens Kansas Effort

Federal actions increased attention on government-held Bitcoin, and Kansas aligns with that broader policy shift. The federal government retains seized Bitcoin under recent directives, and it currently holds significant reserves. This environment raises the profile of state-level frameworks that manage Bitcoin responsibly.

Kansas positions its plan within this larger policy movement, and it supports consistent treatment of digital assets nationwide. The bill creates predictable procedures for custody, and it formalizes Bitcoin management. As a result, Kansas strengthens administrative control while ensuring Bitcoin appears within a regulated reserve strategy.

Kansas expects additional debate as the measure advances, and the proposal may influence other states. The plan outlines core responsibilities for treasury operations, and it maintains strict oversight standards. Kansas uses this legislation to define how Bitcoin fits into modern public finance structures.

The post Kansas Unveils Plan for a Bitcoin Reserve Fund Under State Treasury Control appeared first on CoinCentral.