Kansas Bitcoin ETF Bill Proposes Annual Reviews for ETF Investments in Public Retirement Funds

Kansas Bitcoin ETF Bill Faces Legislative Hurdles

A ground-breaking bill to allocate up to 10% of public employee retirement funds to spot Bitcoin ETFs has been presented by Kansas State Senator Craig Bowser. The goal of Senate Bill 34 is to allow the Kansas Public Employees Retirement System (KPERS) to invest in Bitcoin-backed ETFs in order to diversify its holdings.

The bill, if passed, would create a board of trustees to oversee and allocate up to 10% of the state retirement fund to these Bitcoin-based ETFs. This action might be a big step toward incorporating cryptocurrencies into established financial systems and could open up new avenues for the retirement system’s long-term expansion.

[…] the board may invest and reinvest moneys of the fund in Bitcoin exchange-traded products issued by an investment company registered in Kansas.

the bill

This bill could signal a change in Kansas lawmakers’ views on investing in cryptocurrencies. A bill to cap political cryptocurrency donations at $100 was submitted by Kansas House of Representatives lawmakers in 2023. The fair market value of the digital assets at the time of receipt would serve as the basis for the $100 cap.

Governor’s Decision Awaits as Kansas Bitcoin ETF Bill Advances in State Legislature

It further stated that the board would not be required to sell if the value of the Bitcoin ETFs exceeded 10% of the fund unless doing so would be in the best interests of the beneficiaries. Additionally, the bill stipulates that the board of trustees would be required to conduct an annual review of the investment program in order to track the investments’ success.

Although the bill is a big step forward for Kansas’s Bitcoin supporters, it still has to pass the legislature. On January 17, the bill was sent to the Committee on Financial Institutions and Insurance after being introduced on January 16. It then has four more steps to go before it is forwarded to the House of Representatives, where it will go through a similar procedure. If it is accepted, the governor will review it and either approve it or reject it.

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