Kansas State Senator Craig Bowser has introduced a groundbreaking bill, Senate Bill 34, that could see up to 10% of the Kansas Public Employees Retirement System (KPERS) funds invested in Bitcoin-backed exchange-traded funds (ETFs). The proposal represents a bold step toward integrating cryptocurrency into state-level investment strategies.
Details of the Proposal
The bill seeks to empower a newly established board of trustees to allocate up to 10% of KPERS funds to Bitcoin ETFs issued by investment companies registered in Kansas. The bill specifies:
“[…] the board may invest and reinvest moneys of the fund in Bitcoin exchange-traded products issued by an investment company registered in Kansas.”
The proposal includes a provision allowing the trustees to retain Bitcoin ETFs even if their value exceeds 10% of the fund, provided that such retention aligns with the best interests of beneficiaries. Additionally, the board would be required to conduct annual examinations to assess the performance of these investments.
Legislative Process and Potential Impact
Introduced on January 16, the bill was referred to the Committee on Financial Institutions and Insurance on January 17. To become law, it must clear four additional legislative steps before advancing to the Kansas House of Representatives, where it will undergo a similar process. If successful, it will be sent to the governor for final approval or veto.
Kansas’ Evolving Stance on Crypto
The introduction of Senate Bill 34 follows a more cautious approach to cryptocurrency legislation in 2023. At that time, lawmakers proposed a bill limiting political crypto donations to $100, with donations required to be immediately converted to U.S. dollars. That bill was eventually struck from the calendar due to non-compliance with the state’s Rule 1507, which enforces strict legislative deadlines.
If passed, this new proposal could make Kansas a pioneer in integrating Bitcoin ETFs into public employee retirement funds, signaling a progressive shift in the state’s approach to cryptocurrency investments.
