The U.S. state plans to create a dedicated fund to manage abandoned bitcoins and digital assets.
Kansas lawmakers have introduced a bill to establish a state-managed reserve fund specifically for bitcoin and other cryptocurrencies.
The proposal, introduced by state Senator Craig Bowser, seeks to amend Kansas’ unclaimed property laws. Its goal is to formally recognize digital assets and set clear guidelines for their custody, management, and potential sale.
If approved, oversight of the reserve would fall to the Kansas State Treasurer, who would be responsible for administering the fund according to the parameters established by law.
Under the legislative proposal, unclaimed digital assets would be transferred to the state after three years of inactivity, following written or electronic communications that go undelivered to the owner.
The law leaves some ambiguity regarding the precise definition of “unclaimed digital asset,” but it appears to apply only to digital assets held by entities legally defined as custodians—such as exchanges, banks, trust companies, or other authorized custodians—not to self-custodial wallets.
The three-year clock starts only after communications to the owner are undeliverable and stops immediately if the owner shows any sign of activity, such as logging in or using another account with the same custodian.
The legislation also authorizes the state-designated qualified custodian to stake digital assets and receive airdrops under the Treasurer’s direction. Any staking rewards or airdropped assets generated after three years would be transferred into the reserve, creating a mechanism to progressively accumulate digital assets.
