Kansas Senator Elaine Bowers has proposed Senate Bill No. 34, a groundbreaking measure that could enable the Kansas Public Employees Retirement System (KPERS) to invest up to 10% of its assets in Bitcoin ETF. The bill, introduced during the 2025 legislative session, outlines specific guidelines for these investments, ensuring compliance with existing financial and fiduciary standards.
A Look At Kansas Bitcoin ETF Bill
“This legislation represents an opportunity to modernize our investment strategies while adhering to prudent financial practices,” Senator Bowers stated during the introduction of the bill.
The proposed amendment to K.S.A. 2024 Supp. 74-4921 defines Bitcoin as the digital asset described in Satoshi Nakamoto’s white paper and specifies that eligible Bitcoin ETFs must be approved by the U.S. Securities and Exchange Commission or other regulatory bodies. These products derive value from Bitcoin pools and trade on regulated U.S. exchanges.
According to the bill, KPERS would need to meet strict criteria before venturing into Bitcoin investments. These include obtaining recommendations from qualified investment experts and adhering to a maximum investment cap of 10% of the fund’s total assets. While exceeding this cap due to market fluctuations would not constitute a violation, further investments would be restricted until the asset value realigns with the limit.
NEW: 🇺🇸 Kansas Senator Bowser introduces bill to invest public employee retirement funds in Bitcoin ETFs. pic.twitter.com/yYogvARva2
— Bitcoin Magazine (@BitcoinMagazine) January 22, 2025
The legislation emphasizes safeguarding the interests of KPERS members and beneficiaries. It mandates that all investments prioritize fund preservation and minimize risks. Investments in Bitcoin would also be subject to existing diversification requirements, ensuring a balanced portfolio.
“Bitcoin has emerged as a legitimate asset class over the years, and this bill aims to harness its potential within a regulated framework,” Bowers added.
Approval Odds For The Bill
The measure also requires KPERS to establish policies for evaluating risk versus return, conduct due diligence, and monitor investment performance. An annual review of the fund’s investment strategies would ensure compliance with these guidelines.
Critics have raised concerns about the volatile nature of BTC, questioning its suitability for retirement funds. However, the bill’s safeguards, including expert oversight and defined investment limits, aim to address these apprehensions.
If enacted, Kansas would join a growing list of jurisdictions exploring cryptocurrency as a part of public fund investment strategies. The bill now awaits further deliberation in the Senate, where it could set a precedent for integrating digital assets into traditional financial systems.
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