Emily Walker
Kansas Republican State Senator Craig Bowser has proposed a legislation that may permit the allocation of as much as 10% of state employee retirement funds to Bitcoin (BTC) exchange-traded funds (ETFs).
Kansas Senator Introduces Bill for Bitcoin Investment in Retirement Funds
The initiative, named Senate Bill 34, is designed to empower the Kansas Public Employees Retirement System (KPERS) to invest a portion of public retirement funds into Bitcoin ETFs. Should the bill pass, a board of trustees would be appointed to manage these investments.
Importantly, the bill restricts investments to Bitcoin ETFs from investment firms based in Kansas. Additionally, if the investment’s value surpasses 10% of the overall retirement portfolio, the board is not obliged to liquidate unless it benefits the retirement fund’s participants.
The legislation also requires the KPERS board to perform an annual assessment of the investment strategy, with results to be submitted to the governor for further scrutiny.
This bill marks a notable stride toward recognizing Bitcoin as a legitimate asset. However, it must navigate a detailed legislative process before it can be enacted. Senate Bill 34 was sent to the Committee on Financial Institutions and Insurance on January 17 and needs to pass through multiple rounds of voting before it reaches the Kansas House of Representatives.
Once in the House, the bill will undergo a similar process before being presented to the governor for the final decision. If it faces a veto, it can return to the legislature, where a two-thirds majority in both chambers would be required to override the veto and pass the law.
Senator Bowser’s initiative indicates a notable shift in Kansas’ stance toward cryptocurrencies, contrasting with a 2023 proposal that limited political contributions in crypto to $100 and mandated their immediate conversion to USD, effectively banning crypto holdings.
Growing Interest in Bitcoin Across the US
Since Donald Trump’s election in November 2020, numerous states have started considering Bitcoin in their economic frameworks. Recently, North Dakota’s legislative body proposed BTC investments as a tactic to fight inflation.
Additionally, Oklahoma Senator Dusty Deevers has introduced the Bitcoin Freedom Act, providing residents the choice to receive wages in BTC. Even states with strong Democratic leadership, such as Massachusetts, are contemplating the establishment of a Bitcoin reserve.
While enthusiasm for Bitcoin is on the rise, the US Federal Reserve remains cautious, labeling it “the dumbest idea ever.” Currently, BTC is trading at $105,486, reflecting a 0.7% increase over the last 24 hours.