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Bill

SB 34

Authorizing the KPERS board of trustees to invest in bitcoin exchange-traded products and providing requirements, limitations and definitions regarding such investments.

2025-2026 Regular Session Introduced by Craig Bowser

Allows Kansas pension fund (KPERS) to invest in bitcoin ETPs, establishing rules and limits on digital asset allocation within retirement portfolio management.

Died in Committee
#retirementandpensions
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Bill Summary · SB 34

Legislative bill overview

SB 34 would authorize the Kansas Public Employees Retirement System (KPERS) board of trustees to invest pension funds in bitcoin exchange-traded products (ETPs), subject to specified requirements and limitations. The bill establishes a framework for how much of the retirement fund can be allocated to these digital asset investments and defines the parameters under which such investments may occur.

Why is this important

KPERS manages retirement benefits for approximately 350,000 Kansas public employees, teachers, and retirees, holding tens of billions in assets. Any change to investment authority directly affects the security and growth of these pension funds, which retirees depend on for income stability. This represents a significant policy shift toward cryptocurrency exposure for a major public pension system.

Potential points of contention

  • Volatility and fiduciary duty: Bitcoin's extreme price fluctuations create risk that some argue violates the fiduciary principle of protecting retirement savings for conservative-minded pensioners who cannot afford significant losses
  • Precedent and systemic risk: Approval could encourage other state pension systems to pursue similar investments, potentially concentrating cryptocurrency exposure across public retirement systems
  • Alternative framing: Proponents may argue bitcoin provides portfolio diversification and inflation protection in an evolving financial landscape, particularly as institutional adoption increases
  • Regulatory uncertainty: Federal cryptocurrency regulation remains unsettled, creating potential future compliance risks for the pension system

Compiled from official sources — confirm details with the bill’s official record.

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