In Kansas, a legislative proposal aimed at creating a “Bitcoin and digital asset reserve” in the state treasury has swiftly captured the attention of the Senate’s Financial Institutions and Insurance Committee. The bill, introduced by Republican Senator Craig Bowser as Senate Bill 352 (SB 352), was referred to the committee just a day after its introduction. Unlike direct Bitcoin purchases, the proposal suggests a separate fund to be financed through airdrop and staking revenues originating from digital assets deemed “abandoned” according to Kansas law. Spending authority would require a separate appropriation bill.
Establishment of the Kansas Reserve with “Abandoned Asset” Revenues
SB 352 outlines the creation of a “Bitcoin and digital assets reserve fund” within the state treasury. The distinctive feature that sets this initiative apart from others is its funding mechanism solely from secondary revenues arising from abandoned digital assets. No sources beyond airdrop distributions and staking rewards are identified to finance the reserve.
The legislation also seeks to clarify under what circumstances a digital asset can be classified as “abandoned,” based on amendments to the Unclaimed Property Act. If written communication is returned due to “address not found” and remains unclaimed for three years, the asset is considered abandoned. Likewise, the three-year period applies if the owner exhibits no “indication of ownership interest,” such as account access or transaction activities. This period is 40% shorter than the five-year window for demand or savings deposits.
Reported assets that are taken over by a state-appointed administrator are placed under the control of a qualified custodian. Custodians are permitted to generate rewards through staking. If an asset remains unclaimed under state supervision for three years, the resultant airdrop and staking rewards are transferred to the new reserve fund. The bill also prohibits the investment of Bitcoin into the state’s general fund and mandates that 10% of each other digital asset investment be credited to the general fund.
Campaign Donations and the Significance of Inter-State Competition
Additionally, Senator Craig Bowser has submitted SB 310 to regulate cryptocurrencies within the framework of campaign contributions. According to SB 310, crypto donations must be processed through a U.S.-based registered payment processor, with adherence to Know Your Customer (KYC) rules. The law demands cryptocurrency donations be converted to U.S. dollars and deposited into campaign accounts within three business days while prohibiting committees from holding crypto as campaign assets.
The Kansas initiative is occurring in a period when the “Bitcoin reserve” concept is starting to gain traction at the state level. In New Hampshire, Governor Chris Sununu enacted the Strategic Bitcoin Reserve Act on May 6, 2025, imposing limits on digital assets valued over $500 billion and capping reserves at 5%. Texas provided authority for holding and investing in bitcoin through legislation signed by Governor Greg Abbott in June 2025. Similarly, Arizona’s HB 2749, created in May 2025, waived mandatory sales of unclaimed or seized crypto, effectively establishing a reserve basis.
For the 2026 legislative sessions, similar proposals are on the agenda in Florida and West Virginia. In West Virginia, SB143 allows for up to 10% of state funds to be allocated to bitcoin, precious metals, and stablecoins. While Pennsylvania has contemplated a “bitcoin rights” law to support reserve initiatives, comprehensive reserve legislation has yet to advance. Attempts in Montana, Wyoming, and other states have not progressed beyond the legislative stage.
