Kansas had two very different reasons to celebrate this week.
One, Eric Bieniemy's return to the Chiefs as offensive coordinator.
Two, the state's first bid for a Bitcoin (BTC) reserve.
The Bitcoin news had a little less fanfare, unlike that of Bieniemy's return. But it's a clear signal that the state is stepping into the crypto conversation.
Related: This is the latest U.S. state to drop plans for a Strategic Bitcoin Reserve
Kansas' first Bitcoin reserve proposal
A Kansas legislative committee is now reviewing Senate Bill 352 , introduced by Sen. Craig Bowser (R-Ka.), which would create a Bitcoin and digital assets reserve fund inside the state treasury.
The bill was referred to the Kansas Senate Financial Institutions and Insurance Committee one day after its introduction.
Unlike other states, Kansas is not proposing to buy Bitcoin outright. Instead, the reserve would be funded exclusively through unclaimed digital assets, specifically staking rewards and airdrops generated from crypto that has been deemed abandoned under state law.
How unclaimed crypto becomes a state asset
Under proposed changes to Kansas' unclaimed property laws, a digital asset would be presumed abandoned after three years if the owner cannot be reached or fails to show "acts of ownership," such as logging in or making transactions.
That's a shorter window than traditional bank deposits.
Once classified as unclaimed, the asset would be transferred to a qualified custodian, which could stake the crypto to generate rewards. If the asset remains unclaimed after three years in state custody, any staking rewards or airdrops would flow into the Bitcoin reserve fund.
The proposal reminds me of a California law that takes abandoned virtual currencies like Bitcoin and Ethereum from dormant wallets. But instead of pouring it into a crypto reserve, it safeguards them until they can be reunited with their rightful owners.
The Kansas bill is explicit on one point: Bitcoin itself would not be deposited into the state's general fund. Instead, 10% of deposits from other digital assets would be credited to the general fund, with spending from the Bitcoin reserve requiring separate legislative approval.
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Kansas joins a growing, but divided, state movement
Kansas is now joining a small but expanding group of U.S. states experimenting with Bitcoin in public finance.
New Hampshire and Texas have already enacted strategic Bitcoin reserve laws, while Arizona allows the state to retain unclaimed crypto rather than liquidate it. Other states, including Florida and West Virginia, are considering similar bills for 2026.
At the same time, several proposals in Montana, Wyoming, and elsewhere have failed.
For now, Kansas' proposal is modest, technical, and deliberately low-risk. But it just might become the fourth state in the U.S. with a Bitcoin reserve.
Meanwhile, Bitcoin is back to trade below $90,000. At press time, it was trading at $89,207.22, having dropped by almost 1% in the past 24 hours.
Related: Could Bitcoin replace the US dollar as the world's reserve currency?
This story was originally published by TheStreet on Jan 23, 2026, where it first appeared in the Policy section. Add TheStreet as a Preferred Source by clicking here.
