- Indiana signs House Bill 1042 allowing Bitcoin exposure in public retirement plans through self-directed brokerage options.
- The law requires retirement plans to offer at least one crypto investment product by July 1, 2027.
- The legislation also protects crypto users from special state taxes on digital asset transactions.
Indiana has passed new legislation that allows Bitcoin and other digital assets to be included in certain state retirement plans.
Governor Mike Braun signed House Bill 1042 into law, establishing a framework that permits crypto-related investment products through self-directed brokerage options. The move places Indiana among the first states to formally allow digital asset exposure within public retirement investment structures.
Indiana Becomes First State to Allow Bitcoin in Retirement Plans
Governor Mike Braun approved House Bill 1042, known as the Regulation and Investment of Cryptocurrency Act. The legislation permits the use of Bitcoin and other digital assets within certain public retirement and savings plans.
Done deal: Indiana Governor Mike Braun signed House Bill 1042 (HB 1042) into law, officially titled “Regulation and investment of cryptocurrency.” This legislation allows certain state-administered retirement and savings plans to offer participants access to cryptocurrency…
— MartyParty (@martypartymusic) March 3, 2026
Under the law, state retirement plans must provide a self-directed brokerage option. This brokerage option must include at least one cryptocurrency investment product.
Plan administrators must ensure access to these crypto investment products before July 1, 2027. Retirement plan participants can decide whether they want exposure to digital assets.
The structure allows individuals to choose crypto investments directly through brokerage accounts. These assets will not automatically appear in standard retirement portfolios.
New Law Includes Protections for Crypto Transactions
The legislation also includes protections for residents who use cryptocurrency for legal payments. State and local governments cannot impose special taxes or additional fees on crypto transactions.
These protections apply when digital assets are used to purchase lawful goods and services. The law also protects the right of individuals to self host their digital assets.
Self custody allows users to control their private keys without relying on a third-party platform. Lawmakers said the provision ensures users maintain control over their digital holdings. Supporters of the measure say the framework provides clearer rules for both crypto users and businesses.
Crypto Investment Policies Expand Across US States
Indiana’s move comes as other states review policies related to digital asset investments. Some states are exploring whether pension funds should gain exposure to cryptocurrency products.
Missouri lawmakers have proposed plans connected to a Bitcoin strategic reserve initiative. Other states are studying different models for digital asset investment policies. Federal discussions about crypto retirement investments have also increased.
An executive order signed last August allowed certain 401(k) plans to consider crypto assets. Regulators have warned that retirement investments require strong safeguards. SEC Chair Paul Atkins said limited access could be possible with strict oversight.
Indiana Lawmakers Move Toward Crypto ATM Ban
Indiana lawmakers have advanced House Bill 1116, which could ban cryptocurrency ATMs across the state. The proposal replaces earlier rules that aimed to regulate kiosk operators through licensing, identity checks, and limits on transaction fees.
According to Indiana public media Senator Scott Baldwin said the state is not trying to stop cryptocurrency use. However, he warned that crypto kiosks may enable money laundering and tax evasion. Lawmakers therefore supported replacing regulation with a full ban on the machines.
The updated bill would classify operating a crypto ATM as an illegal deceptive act. The state attorney general could take legal action against operators and property owners hosting the machines. Courts could also order the seizure of the kiosks and funds collected from users.
