Lawmakers in the US state of Kansas are weighing new legislation that would establish a state-managed Bitcoin and digital assets reserve funded by unclaimed digital property already held by the state. Key Takeaways: Kansas is weighing a state-managed Bitcoin reserve funded by unclaimed digital assets. The proposal avoids direct Bitcoin purchases, relying instead on abandoned crypto, airdrops, and staking rewards. The bill updates state law on how unclaimed digital assets are defined and managed. Kansas Senate Bill 352 (SB 352) , introduced on Wednesday by Senator Craig Bowser, proposes the creation of a “Bitcoin and digital assets reserve fund” within the state treasury. The fund would be administered by the Kansas state treasurer and would rely on abandoned digital assets rather than taxpayer-funded cryptocurrency acquisitions. Kansas Bitcoin Bill To Be Funded by Airdrops, Unclaimed Digital Assets Under the bill, the reserve would be built from airdrops, staking rewards, and interest generated from digital assets that fall under Kansas’ unclaimed property laws. These assets may include Bitcoin, cryptocurrencies, and other digital-only assets that have been deemed abandoned after owners fail to claim them within a legally defined period. Notably, the proposal explicitly avoids direct purchases of Bitcoin by the state. Instead, it reflects a broader policy approach gaining traction at both state and federal levels, where governments seek exposure to digital assets without buying them on the open market. This mirrors the White House’s plan to establish a US Strategic Bitcoin Reserve using forfeited Bitcoin rather than newly acquired coins. SB 352 outlines how funds would be allocated once digital assets enter the reserve. Ten percent of each deposit would be transferred to Kansas’ general fund, while Bitcoin itself would be excluded from general fund use and retained within the reserve. State of Kansas introduces State Senate Bill 352 to create a Strategic State Bitcoin and Crypto Reserve. It would permit up to 10% of state trust fund assets to be invested into digital asset ETFs. https://t.co/LqRxRlkKMv pic.twitter.com/NVJYLEqj4N — MartyParty (@martypartymusic) January 22, 2026 The remaining assets would stay under the reserve fund’s management, potentially allowing the state to benefit from long-term appreciation or yield. The bill also introduces amendments to Kansas’ unclaimed property statutes, formally defining terms such as “digital assets” and “airdrops.” It further clarifies how the state should custody, manage, and account for these assets once they are classified as abandoned. After clearing the Federal and State Affairs Committee, SB 352 was referred on Thursday to the Senate Committee on Financial Institutions and Insurance, where it will face further review. Kansas Bitcoin Reserve Proposal Follows Pension Fund ETF Bill The proposal follows earlier digital asset initiatives in Kansas. Senate Bill 34, introduced in January 2025, would allow the Kansas Public Employees Retirement System to allocate up to 10% of its portfolio to spot Bitcoin exchange-traded funds. That bill remains under consideration in the same committee. Kansas is one of several US states exploring crypto-related legislation, including reserve concepts, regulatory task forces, and limited investment frameworks. At the federal level, the administration of President Donald Trump has reiterated plans to move forward with a national Bitcoin reserve funded through seized assets. A senior White House official said in January that the initiative remains a priority. Internationally, countries such as El Salvador and Bhutan have already taken more direct approaches, incorporating Bitcoin into national strategies through state holdings, mining initiatives, and development projects tied to digital assets. The post Kansas Bill Proposes Bitcoin and Digital Assets Reserve Using Unclaimed Property appeared first on Cryptonews .
