Kansas State Senator Craig Bowser has proposed a bill, known as Senate Bill 34, which aims to allow the Kansas Public Employees Retirement System (KPERS) to invest a portion of its retirement fund in Bitcoin-backed exchange-traded funds (ETFs). The bill would establish a board of trustees that would allocate up to 10% of the state’s retirement fund into Bitcoin ETFs. The board would have the authority to invest in Bitcoin exchange-traded products offered by investment companies registered in Kansas. Additionally, the bill states that the board would only be required to sell the Bitcoin ETFs if it is in the best interest of the beneficiaries, even if the value exceeds 10% of the fund. The board of trustees would also be responsible for conducting an annual examination of the investment program to assess performance.
Although this proposal is a significant development for Bitcoin supporters in Kansas, it must undergo the legislative process before it can become law. The bill was introduced on January 16 and referred to the Committee on Financial Institutions and Insurance on January 17. It must pass through four more steps before being presented to the House of Representatives, where it will undergo a similar process. If approved, it will then be sent to the governor for final approval or veto.
This bill represents a potential shift in the stance of Kansas lawmakers regarding cryptocurrency investments. In 2023, lawmakers introduced a bill in the Kansas House of Representatives to limit political crypto donations to $100. This cap would be based on the fair market value of the digital assets at the time of receipt. The bill would have required immediate conversion of the crypto donations into US dollars, with no allowance for holding or spending the assets. However, the 2023 bill was removed from the calendar due to non-compliance with the state’s Rule 1507, which enforces strict deadlines for certain bills.