Indiana lawmakers have sent a bill to Gov. Mike Braun that would expand legal protections for cryptocurrency users and require certain state retirement and savings plans to offer a self-brokerage option with at least one cryptocurrency investment choice.
House Bill 1042 (HB1042) on “regulation and investment in cryptocurrency” approved by the Legislature on Wednesday, with 59 lawmakers voting in favor and 33 against, According to to data from Legiscan.
The bill aims to protect the rights of Bitcoin (BTC) and cryptocurrency investors, prohibit discriminatory cryptocurrency taxes, and open the door to the ownership of digital assets in state pension plans.
The bill will go to Braun for signature. If signed into law, most of the provisions would go into effect on July 1, while the requirement to self-broker a retirement plan would come into effect later.
Several US states have already signed cryptocurrency investor protection bills, including Oklahoma in November 2024 and Kentucky in March 2025.
Pennsylvania House of Representatives Bill 2481 (HB2481), Crypto Investor Protection Laws, passed in October 2024 with powerful bipartisan support, but has not yet been signed into law.
The Indiana Cryptocurrency Bill stands out from the rest as the only piece of legislation intended to offer self-directed brokerage accounts to facilitate cryptocurrency retirement plans.
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Retirement plans add crypto option
The bill would allow Indiana citizens for the first time to own Bitcoin and digital assets as part of their retirement plans.
If signed into law, the bill would require certain state pension and savings plans to offer stand-alone brokerage accounts with at least one cryptocurrency investment option by July 1, 2027.
This would include, but is not constrained to, the Legislature’s defined contribution program, the Hoosier START plan, specified public employee retirement funds, and specified teacher retirement fund programs.
Moreover, the bill includes other key provisions that protect the rights of cryptocurrency investors from future regulatory crackdowns.
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State Laws Restricted on Cryptocurrencies
The Indiana bill would restrict state and local public agencies from adopting or enforcing rules that prohibit lawful cryptocurrency payments, self-custody, or cryptocurrency mining, subject to exceptions in the bill.
Under this legislation, public agencies, with the exception of the Department of Financial Institutions, will not be permitted to adopt regulations prohibiting individuals from accepting digital asset payments for legitimate goods and services, taking custody of their cryptocurrency holdings, or imposing taxes and fees on cryptocurrency payments and stand-alone wallet holdings.
The bill also prohibits the enforcement of regulations that would prohibit cryptocurrency mining operations for companies or individuals.
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