Indiana's bitcoin rights bill heads for final sign-off after bicameral approval

Indiana's state legislature advanced a bill that opens up crypto investment options for key public retirement and savings plans and protects individual access to digital assets. The bill now awaits final approval from the governor.

House Bill 1042, titled "Regulation and investment of cryptocurrency," received bicameral approval after the House concurred with the Senate's amendments on Wednesday. 

The bill, introduced by Rep. Kyle Pierce, requires specified state-administered retirement and savings plans to offer participants a self-directed brokerage account that includes at least one cryptocurrency investment option.

Affected plans include the legislators' defined contribution plan, the Hoosier START college savings program, and specified plans under the public employees' retirement fund and the teachers' retirement fund.

HB 1042 also bars public agencies — except the Department of Financial Institutions — from enforcing rules that limit individuals' use of digital assets. Specifically, agencies may not prohibit or restrict a person's ability to accept crypto as payment for legal goods and services or to hold assets in self-hosted or hardware wallets.

Additionally, the bill prohibits the state from imposing special taxes on crypto activities that do not apply to other financial transactions.

With bicameral approval secured, HB 1042 now awaits action by Indiana Governor Mike Braun. If signed, the bill's provisions would take effect on July 1, 2026.

The advancement of HB 1042 aligns with the nationwide movement to integrate bitcoin and other digital assets into the legacy financial system while safeguarding the rights of individual holders. Last August, President Donald Trump signed an executive order to allow 401(k) retirement plans to include crypto.