Legislature Sends Crypto Bill to Governor
Indiana lawmakers have officially advanced House Bill 1042, a sweeping proposal that expands cryptocurrency investment access within state-administered retirement plans while strengthening protections for individual digital asset users. The bill now heads to Governor Mike Braun for final approval.
Titled “Regulation and Investment of Cryptocurrency” HB 1042 secured bicameral approval after the Indiana House concurred with Senate amendments. The legislation, introduced by Rep. Kyle Pierce, reflects a broader push to integrate digital assets into legacy financial structures while codifying user rights at the state level.
If signed into law, the measure would take effect on July 1, 2026.
Retirement Plans Must Offer Crypto Options
A central feature of the bill requires certain state-administered retirement and savings programs to provide self-directed brokerage accounts that include at least one cryptocurrency investment option.
Affected plans include the legislators’ defined contribution plan, the Hoosier START college savings program, and specific retirement structures under the public employees’ retirement fund and teachers’ retirement fund.
Participants in these defined contribution frameworks would gain expanded flexibility to allocate a portion of their retirement savings to digital assets, potentially including Bitcoin and other regulated crypto products.
Supporters argue this move reflects growing mainstream acceptance of crypto within long-term portfolio strategies.
Protecting Individual Digital Asset Rights
Beyond retirement investments, HB 1042 includes explicit protections for crypto users. The legislation prohibits public agencies - with the exception of the Department of Financial Institutions - from enforcing rules that restrict the lawful use of digital assets.
Specifically, state agencies may not block individuals from accepting cryptocurrency as payment for legal goods and services, nor may they prohibit residents from holding assets in self-hosted or hardware wallets.
The bill also prevents Indiana from imposing special taxes on cryptocurrency transactions that do not apply to comparable financial activities. Lawmakers behind the proposal framed this as a measure to ensure regulatory neutrality and fairness.
Part of a Broader National Shift
Indiana’s move aligns with a nationwide effort to formalize digital asset integration within public finance systems. States across the country have debated crypto retirement options, state-level Bitcoin reserves, and digital payment frameworks.
At the federal level, Donald Trump signed an executive order last August permitting 401(k) retirement plans to include crypto investment options, further signaling institutional acceptance.
While federal agencies continue shaping regulatory standards for stablecoins and digital assets, individual states like Indiana are carving out their own frameworks focused on access, choice, and financial autonomy.
Final Step Before Enactment
With legislative approval secured, all eyes now turn to Governor Braun. A signature would cement Indiana as one of the states most proactive in protecting crypto user rights while embedding digital asset options into public retirement systems.
If enacted, HB 1042 would mark a notable milestone in the gradual normalization of cryptocurrency within traditional savings structures - and could serve as a template for similar legislation nationwide.
