Key Takeaways
- Kansas Senator Craig Bowser proposes a bill to allocate 10% of retirement funds to Bitcoin ETFs.
- The bill establishes a board to manage investments and conduct annual performance reviews.
- The proposal must navigate multiple legislative steps before becoming law.
Kansas State Senator Craig Bowser has introduced Senate Bill 34, a proposal to allocate up to 10% of the Kansas Public Employees Retirement System (KPERS) funds into spot Bitcoin exchange-traded funds (ETFs).
Investment management
The bill would establish a board of trustees to manage these investments and allow them to invest and reinvest state retirement funds in Bitcoin ETFs.
The legislation specifies that if the value of Bitcoin ETFs surpasses 10% of the fund, the board would not be required to sell unless it serves the best interests of beneficiaries.
Additionally, the board would be required to conduct an annual examination of the investment program to evaluate its performance.
Legislative process
Introduced on January 16, the bill was sent to the Committee on Financial Institutions and Insurance the next day.
It must pass four additional steps before being referred to the Kansas House of Representatives for further deliberation.
Ultimately, the bill would need the governor’s approval to become law.
Historical context
This proposal signals a potential shift in Kansas lawmakers’ approach to Bitcoin investments.
Previously, a 2023 bill sought to limit political crypto donations but failed to advance due to compliance issues with state deadlines.
If passed, this bill could mark a landmark moment for integrating Bitcoin into state-managed financial systems.
