Kansas Republican State Senator Craig Bowser has introduced a bill aimed at allocating up to 10% of public employee retirement funds to Bitcoin (BTC) exchange-traded fund (ETF) products.
Kansas Senator Proposes Bitcoin Exposure For Retirement Funds
The bill, titled Senate Bill 34, seeks to authorize 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 of trustees tasked with overseeing investments in BTC ETFs.
Notably, the bill specifies that the KPERS board of trustees may 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 retirement fund’s portfolio, the board is not required to sell unless it is in the best interest of the fund’s beneficiaries.
Additionally, the legislation mandates the KPERS board of trustees to conduct an annual review of the investment program. The findings from 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 Committee on Financial Institutions and Insurance on January 17 and must clear four rounds of approval before being sent to the Kansas House of Representatives.
At 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 vote 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’s House of Representatives had introduced a bill that restricted political crypto donations to $100 and mandated the immediate conversion of such donations into USD, prohibiting the holding or spending of cryptocurrency.
BTC Fever Taking Over The US
Since Donald Trump’s victory in the November US presidential election, several states have begun exploring Bitcoin as part of their economic strategies. Earlier this month, North Dakota’s Legislative Assembly proposed investing in BTC to combat inflation.
Similarly, Oklahoma Senator Dusty Deevers recently introduced the Bitcoin Freedom Act, which aims to give residents the option to receive salaries in BTC. Even traditionally Democratic states like Massachusetts are reportedly considering establishing a Bitcoin strategic reserve.
Despite this growing enthusiasm for Bitcoin, the US Federal Reserve remains skeptical of the idea, dismissing it as “the dumbest idea ever.” At press time, BTC trades at $105,486, up 0.7% in the past 24 hours.
Featured Image from Unsplash.com, Chart from TradingView.com
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