The US state of Kansas is discussing a bill that would allow its public pension fund to invest in Bitcoin exchange-traded products (ETPs).
On January 23, Kansas State Senator Craig Browser the introduction A bill has been submitted to the Kansas State Senate that, if approved, would allow the Kansas Public Employees Retirement System (KPERS) to invest in spot Bitcoin ETFs.
According to the bill, KPERS will be able to allocate a maximum of 10% of its funds to bitcoin-backed products alongside traditional investments, such as stocks, bonds, real estate, and alternative assets such as private equity and hedge funds, as part of the bill. Diversified portfolio.
However, ETFs must be offered by investment companies registered in Kansas and traded on U.S.-regulated exchanges.
A board of trustees to supervise the fund
As part of the bill, the Board of Trustees, typically appointed by the Governor, legislative leaders, and representatives elected by KPERS members, would be responsible for overseeing the administrative and investment activities of the KPERS Fund.
The board will ensure that all investments made are “solely in the best interests of the members and beneficiaries of the system,” as stated in a section of Senate Bill 34.
In line with this, the Board will also decide whether to sell Bitcoin exchange-traded products if their value exceeds 10% of the fund, but only if such action is in the best interests of the beneficiaries.
Among other duties, the Board of Directors will monitor the performance of the funds and provide annual reviews of all investments.
These reviews will evaluate compliance with the Fund’s objectives and recommend the necessary adjustments to ensure compliance with fiduciary responsibilities.
The Council will include a summary of these evaluations in its annual report to the Governor.
The bill was formally introduced on January 16 and passed to the Financial Institutions and Insurance Committee the next day, where it was introduced Currently sitting.
Before the governor signs it into law, it must pass through both chambers of the Kansas Legislature, including committee reviews, debates, and votes, followed by House approval.
State-backed Bitcoin investments are gaining momentum
Bill 34 comes shortly after Kansas regulators debated legislation that would cap political cryptocurrency donations.
It has proposed limiting political cryptocurrency donations to $100 and mandating full disclosure by the donor, which critics say defeats the basic spirit of the decentralized space.
The latest move comes as a welcome change for cryptocurrency enthusiasts in Kansas and represents a shift in the state’s approach, aligning it with the recent trend of other US states exploring exposure to Bitcoin.
Along with the Bitcoin Strategic Reserve Bill introduced by Senator Cynthia Lummis in August last year, other US states, such as Oklahoma, New Hampshire, Ohio, Texas, Pennsylvania and North Dakota, have moved to adopt a similar strategy at the state level.
USA SBR Update: In the US, 12 states have now submitted a strategy #Bitcoin Reserve legislation. Adding Arizona (2023 GDP = $522.8 billion), states that have proposed SBR legislation have a total GDP of $8.4 trillion, 30.3% of US GDP, and 7.9% of global GDP.
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Meanwhile, other US-based state pension funds that have made investments in Bitcoin include the Michigan State Retirement System, which allocated $6.6 million into the ARKB Spot Bitcoin ETF ARK 21Shares last year.
Elsewhere, the Virginia Pension Fund and the Florida State Retirement Fund have considered similar investments.
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