Bitcoin Reserve Proposal in Kansas: State‑ Managed Fund from Unclaimed Crypto Assets in 2026

Kansas lawmakers are contemplating Senate Bill 352, which is a plan to set up a main state Bitcoin and digital assets reserve that will be financed 100% from unclaimed cryptocurrency, airdrops, and staking rewards, but not with direct market purchase.

The bill, introduced by Senator Craig Bowser, would make the “Bitcoin and Digital Assets Reserve Fund” a new initiative of the state treasurer.

Legislative framework

SB 352 changes Kansas’ property laws to include digital assets as property, even if they are intangible or incapable of physical possession or delivery such as “digital assets, ” “airdrops, ” and “staking.”

The bill stipulates that such assets become abandoned if there is no activity for three years. After that, any staking rewards or airdrops obtained can be deposited in the reserve.

The treasurer can stake the assets that qualify and thus earn additional yield but should still keep the original token owner’s right to the underlying token at any time in case it is reclaimed.

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Bitcoin Exempt as State Crypto Reserve Rules Take Shape

According to the law, 10 % of each deposit of non-Bitcoin digital assets into the reserve must be turned over to the Kansas general fund, subject to legislative appropriations. Bitcoin itself, however, is excluded from this transfer, remaining solely within the reserve.

On the federal side, the White House has signalled a priority to build a Strategic Bitcoin Reserve using forfeited assets, thus confirming the trend of government-held digital assets.

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Conclusion

Kansas is a part of a rising number of states that have been deliberating on crypto-focused legislation, such as Arizona, Utah, Oklahoma, and Wyoming.

These laws vary from strategic reserve concepts to task forces and ETF allocations for public pension systems. Any spending from the fund requires appropriation acts and warrants from the director of accounts, ensuring the legislative branch controls the fund.

Also Read: Bitcoin Gains Institutional Boost as Nomura Unit Launches 5% Yield Fund