Kansas Legislators Launch Bold Move: Creating State-Backed Bitcoin Reserve Fund
Kansas just threw a haymaker at traditional finance—lawmakers are pushing to establish a sovereign Bitcoin treasury.
### The Heartland Goes Hard on Hard Money
Forget just mining or accepting taxes in crypto. This legislative push aims to carve out a slice of the state's balance sheet for a dedicated Bitcoin reserve. It's a direct challenge to the dollar's monopoly on public-sector savings, positioning digital gold as a strategic state asset. The move bypasses federal hesitation, putting monetary sovereignty back on the statehouse agenda.
### A Sovereign Hedge Against the System
The fund wouldn't just sit idle. Proponents see it as a non-correlated asset—a hedge against inflation and federal monetary policy, funded by taxpayers but insulated from traditional market swings. It turns the state treasury into a potential long-term accumulator, betting on Bitcoin's scarcity over the endless printing of fiat. Critics in Topeka likely see it as reckless speculation; supporters call it the ultimate fiscal responsibility—finally saving in something that can't be debased by a central bank's whim.
### The Ripple Effect for Red and Blue States
Kansas isn't acting in a vacuum. Watch for copycat legislation. A successful launch could trigger a domino effect, forcing other states to consider their own crypto reserves or risk being left with devaluing dollars. It pressures the federal government to clarify its stance, while giving institutional legitimacy to Bitcoin as a reserve asset—not just a speculative toy. The message is clear: if you won't secure the future, we will.
One cynical finance jab? Wall Street spends billions on volatility derivatives to hedge the dollar's decline, while Kansas might just buy Bitcoin and call it a day—proving sometimes the smartest trade is the one your average banker would call insane.
Kansas to allow 10% of deposits to the reserve fund into the general fund
Kansas lawmakers have previously focused largely on tax incentives to block startups and on pilot programs for digital payments within state agencies to integrate crypto into state financial strategies. The recent proposal of SB-352 signals a more ambitious effort that could operate like sovereign wealth funds, allowing the state to hold, manage, and grow crypto holdings for public benefit.
Proposed bill in *Kansas* to create Bitcoin & digital assets reserve fund…
Kansas.
Yes, I will do what I can here. pic.twitter.com/KXjGMJxpoI
— Nate Geraci (@NateGeraci) January 23, 2026
The SB-352 bill allows the state treasurer to credit up to 10% of each deposited digital asset into the Bitcoin and digital asset reserve fund to the state’s general fund. The reserve fund will consist of all airdrops, staking rewards, and interest earned, as prescribed in K.S.A. 58-3952(f) and amendments thereto.
According to the proposal, all expenditures from the Bitcoin and digital assets reserve fund are bound by appropriations acts upon warrants of the director of accounts. So far, some states have already explored a strategic Bitcoin reserve as a treasury strategy; however, the Kansas bill focuses more on custody rules and unclaimed property.
At the time of publication, BTC was down 0.6% to $89,365. The token has lost roughly 6.5% this week as we head into the weekend. ETH, on the other hand, had lost 2.14% on the daily chart, trading at $2,945 after losing almost 11% this week.
Kansas follows a wave of proposals by other states across the U.S.
Kansas joins other states that have enacted legislation establishing crypto reserve funds, such as Arizona, Utah, and Oklahoma. Wyoming has already established a blockchain legal framework, including crypto banks and a special-purpose depository charter. Wyoming became the first U.S. state to launch a blockchain-based stablecoin, issuing the Frontier Stable Token on several blockchain networks, with reserves backed by USD and short-term treasuries.
“Today, Wyoming reaffirms its commitment to financial innovation and consumer protection. The mainnet launch of the Frontier Stable Token will empower our citizens and businesses with a modern, efficient, and secure means of transacting in the digital age.”
–Mark Gordon, Governor of Wyoming
Additionally, Texas has also accepted Bitcoin for state fees and passed Senate Bill 21 last year, creating the Texas Strategic Bitcoin Reserve. According to a Cryptopolitan report, Texas Strategic Bitcoin Reserve is funded by legislative appropriations, dedicated fees, investment returns, and voluntary cryptocurrency gifts.
Florida and Arizona have also experimented with pilot programs for digital asset management in government operations. Florida established a proposal early this month to form a Bitcoin reserve. For eligibility, the House Bill (HB) 1039 required the state to purchase only a cryptocurrency with an average market cap of at least $500 billion over the past 24-month period. This means the reserve will only hold BTC with a market cap exceeding $1 trillion for now. ethereum falls short of the requirement, with a market cap of roughly $354 million as of now.
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