A significant legislative move has been made in Kansas as Senator Craig Bowser introduced Senate Bill 352 (SB352) on January 21, 2026. This bill aims to establish a Bitcoin and digital assets reserve fund that would be financed through staking rewards, airdrops, and interest accrued from unclaimed digital assets currently held by the state.
SB352 seeks to modernize Kansas” unclaimed property laws by incorporating digital assets into its framework. Under the proposed law, digital assets would be classified as unclaimed property after three years of inactivity or lack of communication from the owner. At that point, custodians, including exchanges and banks, would be mandated to transfer these assets in their original form to the state or to a licensed qualified custodian.
While the state holds these assets, it will have the authority to stake eligible digital assets, thereby generating additional staking rewards, airdrops, and interest. Importantly, the original owners would retain the right to reclaim their assets at any time. If these assets remain unclaimed for another three years, any rewards and interest accrued during the state”s custody would automatically be allocated to the newly created Bitcoin and Digital Assets Reserve Fund. Of this, 10% of non-Bitcoin deposits would be credited to the state”s general fund, with all expenditures requiring legislative approval.
This initiative builds upon previous efforts by Kansas to embrace the cryptocurrency sector, including tax incentives aimed at attracting blockchain startups. Additionally, a related bill, SB34, was introduced in January 2025, permitting the Kansas Public Employees Retirement System to invest in Bitcoin ETFs under certain restrictions.
The Kansas proposal reflects a growing trend among states like Wyoming and Texas, which have enacted similar measures to integrate digital assets into their financial frameworks. Furthermore, it aligns with federal legislative efforts such as the BITCOIN Act, which seeks to establish a more favorable regulatory environment for cryptocurrencies and digital assets.
