Kansas Republican State Senator Craig Bowser has introduced a bill that would allow the Kansas Public Employees Retirement System (KPERS) to invest up to 10% of its funds in Bitcoin exchange-traded funds (ETFs). The bill, Senate Bill 34, would establish a KPERS board of trustees to oversee these investments. The bill specifies that the Bitcoin ETFs can only be issued by Kansas-based investment firms.
It also states that the KPERS board is not required to sell the ETFs if their value exceeds 10% of the retirement fund’s portfolio, unless it is in the best interest of the fund’s beneficiaries. If passed, the bill would require an annual review of the investment program by the KPERS board. The findings from this review would then be presented to the governor for oversight and evaluation.
Bitcoin ETF proposal for KPERS
Senate Bill 34 was referred to the Committee on Financial Institutions and Insurance on January 17. It must pass through several legislative stages before becoming law.
If it receives the governor’s approval or if a veto is successfully overridden by a two-thirds majority in both legislative chambers, it will be enacted. Senator Bowser’s proposal reflects a growing interest in Bitcoin among several states. North Dakota’s Legislative Assembly is considering investing in Bitcoin to combat inflation, while Oklahoma Senator Dusty Deevers recently introduced the Bitcoin Freedom Act, which aims to give residents the option to receive salaries in Bitcoin.
However, the US Federal Reserve remains skeptical of Bitcoin, with one official describing it as “the dumbest idea ever.” At press time, Bitcoin trades at $105,486, up 0.7% in the past 24 hours.
