In a revolutionary move, Craig Bowser, a prominent state senator from the Republican Party in Kansas, has put forward a legislative proposal with the goal of diverting a portion of public employees’ retirement funds, up to 10%, into products linked to the Bitcoin (BTC) exchange-traded fund (ETF).
Bitcoin Investment: A New Avenue for Retirement Funds
Craig Bowser’s proposed legislation, named Senate Bill 34, seeks to empower the Kansas Public Employees Retirement System (KPERS) with the ability to invest a maximum of 10% of public employee retirement funds into Bitcoin ETFs. With the successful passing of this bill, a special KPERS board of trustees would be established for the purpose of monitoring investments in BTC ETFs.
Interestingly, the bill has been designed to permit the KPERS board of trustees to allocate funds exclusively to Bitcoin ETF products that are issued by Kansas-based investment firms. The legislation further states that in the event the value of BTC ETFs surpasses the 10% threshold of the retirement fund’s portfolio, the board is under no obligation to liquidate unless it would be beneficial for the fund’s beneficiaries.
In addition to this, the bill stipulates that the KPERS board of trustees must conduct a yearly review of the investment program with the results submitted to the governor for inspection and evaluation.
The bill’s introduction indicates a monumental stride towards the mainstream acceptance of Bitcoin as a valuable asset. However, it needs to successfully pass through a series of legislative stages before becoming law. After its reference to the Committee on Financial Institutions and Insurance on January 17, Senate Bill 34 must receive approval in four rounds before proceeding to the Kansas House of Representatives.
Within the House of Representatives, the bill must then undergo a similar legislative course prior to reaching the governor’s desk for the final stamp of approval or veto. In the event of a veto, the legislation would revert to the state legislature and require a two-thirds majority vote in both chambers to negate the veto and become law.
The proposal by Senator Bowser reveals a significant policy shift in Kansas’ stand on cryptocurrencies. In a previous move in 2023, the state’s House of Representatives had introduced a bill that placed a cap on political crypto contributions to $100 and mandated the immediate conversion of such donations into USD, prohibiting the holding or spending of cryptocurrency.
Bitcoin Fever Sweeping Across the US
In the aftermath of Donald Trump’s victory in the US presidential election, several American states have commenced exploring the utility of Bitcoin for their economic strategies. Earlier in the month, North Dakota’s Legislative Assembly proposed BTC investment as a tool to counter inflation.
Similarly, Oklahoma Senator Dusty Deevers recently unveiled the Bitcoin Freedom Act, which seeks to provide local residents with the choice to receive their salaries in Bitcoin. Reports suggest that even traditionally Democratic states like Massachusetts are considering the creation of a Bitcoin strategic reserve.
Despite the rising popularity of Bitcoin, the US Federal Reserve continues to express doubts, dismissing the concept as “the dumbest idea ever.” As of the current moment, Bitcoin trades at a value of $105,486, showing an increase of 0.7% within the last 24 hours.
FAQs
What is Senate Bill 34?
Senate Bill 34 is a proposed law introduced by Craig Bowser, a Kansas state senator. If passed, this legislation would enable the Kansas Public Employees Retirement System (KPERS) to invest up to 10% of public employee retirement funds into Bitcoin ETFs.
Who will oversee the Bitcoin investments?
A special KPERS board of trustees will be established to monitor investments in Bitcoin ETFs if the bill is passed.
What will happen if the value of BTC ETFs surpasses 10% of the retirement fund’s portfolio?
The legislation stipulates that if the value of BTC ETFs surpasses 10% of the retirement fund’s portfolio, the KPERS board of trustees is not obliged to sell unless it would benefit the fund’s beneficiaries.
What was Kansas’ previous stance on cryptocurrency?
In 2023, Kansas’ House of Representatives introduced a bill restricting political crypto donations to $100 and mandating the immediate conversion of such donations into USD, banning the holding or spending of cryptocurrency. Senator Bowser’s proposal marks a significant shift in this stance.
