Kansas is the latest U.S. State to consider a role formal for Bitcoins and digital assets within public finances. Lawmakers have introduced legislation which would establish a Bitcoins and Digital Assets Reserve Fund, managed by state officials.
A bill introduced by state senator Craig Bowser proposes that Kansas unclaimed-property laws be amended to include digital assets such as cryptocurrencies and virtual currency, to provide a framework of their management and possible sale, to ensure the safekeeping, custody and management.
This legislation will place the oversight of the reserve Kansas State Treasurer
Below is a list of all the proposalUnclaimed digital assets like Bitcoin would be transferred back to the government after three years inactivity, if the owner has not been contacted by email or written communication.
There is some ambiguity around what an ‘unclaimed digital asset’ is but the bill appears to apply only to custodial digital assets held by a legally defined “holder,” Not to wallets that are self-contained.
According to the bill, three years of abandonment begins when a written or electronic message sent by the owner has been returned undeliverable. It stops instantly if there is any indication that the owner may be active, such as logging into or accessing a different account at the same custodian.
This bill is different from many of the traditional ways that unclaimed assets are handled. Instead of being liquidated, these assets can be held and delivered in their original digital format.
The law also allows for the qualified state custodian designated to receive digital assets to be staked and airdropped, with the approval of the treasurer.
Staking rewards and assets that are airdropped after 3 years will be transferred to BTC Reserve Fund. The state can then accumulate digital assets with time.
A notable provision of the bill is that BTC cannot be deposited in the state general fund.
Kansas, instead, would keep Bitcoin for its own reserve and deposit 10% of all digital assets, other than Bitcoin, into the state’s general fund. This is contingent upon legislative funding. The supporters argue that this structure views BTC as an asset for long-term reserves rather than short-term revenues.
States actively push for Bitcoin reserves
In the bill, the state also specifies how it will deal with the sale of assets. The bill also outlines how the state would handle digital assets.
It is important to limit market disruption, while also adding more clarity around the management of digital assets held by governments.
This legislation will place Kansas in a group of states that have been exploring ways to integrate Bitcoins and other digital currencies into their long-term custodial and financial strategies.
State legislators across the country have been working on this issue for several years. have debated Bitcoin: Could it be used as an alternative currency? hedge against inflationIt can be used as a tool to diversify the economy or modernize infrastructure in public finances.
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Source: bitcoinmagazine.com
