Kansas State Senator Craig Bowser introduced a bill to allocate a maximum of 10% of public employee retirement funds into spot Bitcoin exchange-traded funds (ETFs).
Bowser presented Senate Bill 34, aiming to authorize the Kansas Public Employees Retirement System (KPERS) to invest a segment of its retirement fund in Bitcoin (BTC)-backed ETFs.
The bill proposes the establishment of a board of trustees responsible for allocating up to 10% of the state’s retirement fund into Bitcoin-backed ETFs. The bill states:
“[…] the board may invest and reinvest moneys of the fund in Bitcoin exchange-traded products issued by an investment company registered in Kansas.”
Furthermore, it specifies that if the value of the Bitcoin ETFs surpasses 10% of the fund, the board is not obligated to sell unless it is deemed beneficial for the beneficiaries. Additionally, the bill mandates the board of trustees to conduct an annual evaluation of the investment program to monitor investment performance.
Bitcoin ETF Exposure for Employee Retirement Funds
Although this proposal presents a significant advancement for Bitcoin proponents in Kansas, it must undergo the legislative process to become law.
Introduced on January 16, the bill was referred to the Committee on Financial Institutions and Insurance on January 17.
Subsequently, it must pass through four additional stages before reaching the House of Representatives, where it will undergo a similar process. Upon approval, it will be forwarded to the governor for final endorsement or veto.
This bill signifies a potential shift in the standpoint of Kansas legislators regarding cryptocurrency investments. In 2023, the Kansas House of Representatives introduced a bill to restrict political crypto donations to $100, based on the fair market value of the digital assets upon receipt.
Moreover, the bill would have necessitated an immediate conversion of crypto donations into US dollars, barring any expenditure or retention of the assets. However, the 2023 bill was removed from the agenda due to non-compliance with the state’s Rule 1507, which enforces stringent deadlines for specific bills.