Kansas Pushes for Bitcoin in Public Employee Retirement Funds
Innovative Proposal by Kansas Legislator
In a significant move towards integrating cryptocurrency into traditional financial systems, Kansas State Senator Craig Bowser, a Republican, has put forth a pioneering legislative proposal. This proposal aims to allocate a portion of public employee retirement funds into Bitcoin (BTC) exchange-traded fund (ETF) products, marking a potential shift in investment strategies for the Kansas Public Employees Retirement System (KPERS).
Details of Senate Bill 34
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Senate Bill 34, introduced by Senator Bowser, seeks to allow KPERS to invest up to 10% of its public employee retirement funds in Bitcoin ETFs. The proposed legislation outlines the creation of a KPERS board of trustees, responsible for managing and overseeing these investments in Bitcoin ETFs.
Crucially, the bill mandates that the investments be restricted to Bitcoin ETF products issued by Kansas-based investment firms. Moreover, it provides flexibility by allowing the board to maintain investments exceeding the 10% cap if deemed beneficial for the fund’s beneficiaries.
To ensure accountability and transparency, the legislation requires an annual review of the investment program. The findings from this review are to be submitted to the governor, facilitating oversight and evaluation.
The Legislative Journey Ahead
While the introduction of Senate Bill 34 represents a step towards acknowledging Bitcoin’s potential as a valuable asset, the bill must navigate a thorough legislative process. Referred to the Committee on Financial Institutions and Insurance on January 17, the bill must pass through four stages of approval before advancing to the Kansas House of Representatives. Upon reaching the House, it will undergo a similar legislative process before being sent to the governor for final consideration. Should the governor veto it, a two-thirds majority in both legislative chambers would be necessary to override the decision and enact the bill into law.
Kansas’ Evolving Stance on Cryptocurrency
This proposal by Senator Bowser underscores Kansas’ evolving perspective on cryptocurrencies. In a contrasting move in 2023, the state’s House of Representatives introduced legislation limiting political donations in cryptocurrency to $100 and requiring their immediate conversion to USD, prohibiting holding or spending.
Bitcoin’s Growing Influence Across the United States
Since the election of Donald Trump in November, various states have been contemplating Bitcoin as part of their economic strategies. For instance, North Dakota’s Legislative Assembly recently proposed investing in Bitcoin as a hedge against inflation. Meanwhile, Oklahoma Senator Dusty Deevers introduced the Bitcoin Freedom Act, which would allow residents to receive their salaries in Bitcoin. Even states traditionally aligned with the Democratic Party, such as Massachusetts, are reportedly considering establishing a strategic Bitcoin reserve.
Despite this burgeoning interest, the US Federal Reserve remains skeptical, dismissing Bitcoin as an impractical financial tool. As of the latest update, Bitcoin is trading at $105,486, experiencing a slight increase of 0.7% over the past 24 hours.
