Kansas Republican state senator Craig Bowser has introduced one invoice aims to allocate up to 10% of public employee pension funds to Bitcoin (BTC) exchange traded fund (ETF) products.
Kansas Senator Proposes Bitcoin Exposure for Pension Funds
The bill, titled Senate Bill 34, aims to allow the Kansas Public Employees Retirement System (KPERS) to invest up to 10% of public employee retirement funds in Bitcoin ETFs. If passed, the legislation would establish a KPERS board tasked with overseeing investments in BTC ETFs.
Notably, the bill states that KPERS’ board of directors can allocate funds to Bitcoin ETF products issued exclusively by Kansas-based investment firms. It also stipulates that if the value of BTC ETFs exceeds 10% of the pension fund’s portfolio, the board is not required to sell unless it is in the best interests of the fund’s beneficiaries.
In addition, the legislation mandates the KPERS board to conduct an annual review of the investment program. The results of this review must then be presented to the governor for oversight and evaluation.
While the bill represents a significant step toward Bitcoin’s mainstream acceptance as a store of value, it must undergo a rigorous legislative process before becoming law. Senate Bill 34 was referred to the Financial Institutions and Insurance Committee on Jan. 17 and must pass four rounds of approval before being sent to the Kansas House of Representatives.
In the House of Representatives, the bill would go through a similar legislative process before reaching the governor’s desk for final approval or veto. If vetoed, the legislation would return to the state legislature, where it would need a two-thirds majority in both chambers to override the veto and become law.
Senator Bowser’s proposal highlights a significant shift in Kansas’ approach to cryptocurrencies. In 2023, the state House of Representatives had introduced a bill that limited political crypto donations to $100 and mandated the immediate conversion of such donations to USD, prohibiting the holding or spending of cryptocurrency.
BTC fever takes over the US
Since Donald Trump’s victory in the US presidential election in November, several states have begun to explore Bitcoin as part of their economic strategies. Earlier this month, the North Dakota Legislature proposed invest in BTC to fight inflation.
Likewise Oklahoma Senator Dusty Deevers recently was introduced The Bitcoin Freedom Act, which aims to allow residents to receive wages in BTC. Even traditionally Democratic states like Massachusetts reportedly are considering establishing a strategic Bitcoin reserve.
Despite this growing enthusiasm for Bitcoin, the US Federal Reserve remains skeptical of the idea, dismiss it as “the dumbest idea ever”. At press time, BTC is trading at $105,486, up 0.7% in the last 24 hours.
Featured image from Unsplash.com, chart from TradingView.com
