Kansas proposes bill to invest up to 10% of retirement money in Bitcoin ETFs

Kansas State may adopt a proposal to invest up to 10% of employee retirement funds into spot Bitcoin exchange-traded funds (ETFs) if State Senator Craig Bowser’s bill passes.

Senator Bowser introduced Senate Bill 34, which clears the Kansas Public Employees Retirement System (KPERS) to invest part of the retirement fund in spot Bitcoin ETF.

The bill would establish a board of trustees to spend up to 10% of the money in the state’s retirement fund on Bitcoin-backed ETFs. Part of the bill reads, “… the board may invest and reinvest monies of the fund in Bitcoin exchange-traded products issued by an investment company registered in Kansas.”

Annual performance monitoring will be carried out to ensure sustainability

The program is open to growing the value of Bitcoin ETFs beyond 10% of the fund. The Board of Trustees is not mandated to sell unless the sales are made with the fund’s beneficiaries in mind.

Furthermore, the governing body would be in charge of conducting annual scrutiny of the investment program to ascertain whether it is moving in the best direction.

Although the bill must overcome legislative steps to operate, it is a bold move and a motivation for Kansas Bitcoin lovers. If it becomes a law, it will set precedents for other states in the US.

The bill, introduced on January 16, has been in the hands of the House Committee on Financial Institutions and Insurance since January 17. 

Kansas bill to cap crypto donations at $100 faces delays

In 2023, lawmakers in the Kansas parliament introduced a bill to limit political crypto donations to $100, depending on the fair market value of the digital asset upon receipt. 

The bill further directed that any crypto donations must be converted into US dollars upon receipt without holding the asset. However, the bill collapsed because it didn’t keep up with timelines.

While Senate Bill 34 has been handed to the committee, four critical steps await it before it’s handed over to the House of Representatives. Similarly, it will be subjected to a similar process in the House, and should it pass, it will be forwarded to the governor for final approval or rejection.