TLDR
- HB 1042 passed both chambers and awaits the governor’s signature.
- The bill permits public funds to invest in cryptocurrency ETFs.
- State plans must offer brokerage accounts with crypto options.
- Agencies cannot restrict lawful use or custody of digital assets.
Indiana’s HB 1042 bill has passed both legislative chambers and is now awaiting the governor’s signature. The measure positions the state closer to formal integration of cryptocurrency within public investment frameworks.
According to Foresight News, the bill was introduced by State Representative Kyle Pierce. It permits public investment funds to engage in the digital currency sector by investing in cryptocurrency exchange-traded funds.
The legislation also requires the creation of investment structures before such options are offered. These structures include 529 education savings plans and specific retirement funds for teachers, public employees, and legislators.
In addition, the bill allows investment funds from other states to allocate assets into crypto ETFs under Indiana’s framework. With bicameral approval secured, the proposal now awaits action from Governor Mike Braun.
Retirement and Education Funds Gain Crypto Access
HB 1042 requires certain state-administered plans to provide access to cryptocurrency investments. Each covered plan must include at least one digital asset option within a self-directed brokerage account.
The Hoosier START 529 education savings plan is included in the measure. Retirement funds for teachers, public employees, and state legislators are also covered.
The legislation focuses on crypto ETFs rather than direct token purchases. This structure allows exposure to digital assets through regulated investment vehicles.
Participants would choose whether to invest in these options. The bill does not mandate participation in cryptocurrency markets.
Before offering such products, the state must establish approved investment programs. These programs would manage compliance and oversight for digital asset exposure.
Protections for Digital Asset Use
The bill sets limits on how public agencies may regulate digital asset activities. With the exception of the Department of Financial Institutions, agencies may not restrict lawful crypto use.
Individuals may accept cryptocurrency as payment for legal goods and services. Agencies may not prohibit this practice under the bill.
The measure also protects the right to hold digital assets in self-hosted or hardware wallets. Custody choices remain with the individual.
The state is barred from imposing special taxes on crypto transactions. Any taxation must align with rules applied to other financial transactions.
These provisions address both investment access and personal use. The text outlines clear boundaries for state enforcement actions.
Legislative Process and Next Steps
The House approved the Senate’s amendments before final passage. This action completed the bicameral approval process.
Representative Kyle Pierce sponsored the bill during the legislative session. Lawmakers reviewed its scope in committee hearings and floor debates.
The bill now moves to Governor Mike Braun for consideration. He may sign it into law or return it with a veto.
If signed, HB 1042 will take effect on July 1, 2026. State agencies and retirement administrators would then begin implementation steps.
National Context and Market Integration
Indiana’s action comes as digital assets gain attention within retirement systems. Federal policy has also evolved in recent months.
In August, President Donald Trump signed an executive order allowing 401(k) plans to include cryptocurrency options. Indiana’s measure applies similar principles within state-managed programs.
HB 1042 centers on providing structured access to digital asset investments. It also defines the rights of individuals to hold and use cryptocurrency.
With final legislative approval complete, Indiana’s bitcoin rights bill now awaits the governor’s signature. The outcome will determine whether the state formally expands crypto access across public investment programs.
