Indiana’s Crypto‑Rights Bill Moves Toward Governor’s Desk
Indianapolis, IN – The Indiana General Assembly has advanced House Bill 1042, a measure that would broaden legal protections for cryptocurrency users and mandate that certain state‑run retirement and savings plans provide a self‑directed brokerage option that includes at least one crypto investment. The bill now awaits the signature of Governor Mike Braun.
Legislative Journey
HB 1042 cleared the chamber on Wednesday with a 59‑33 vote, according to the state’s legislative tracking service Legiscan. The bill, which addresses “regulation and investment of cryptocurrency,” moves forward as a governor’s‐signed initiative. If Braun signs it, most provisions will become effective on July 1, 2026, while the retirement‑plan requirement would take effect a year later, on July 1, 2027.
Core Provisions
| Provision | What It Does |
|---|---|
| Investor protections | Extends state‑level safeguards to Bitcoin (BTC) and other digital assets, shielding users from discriminatory taxes and imposing restrictions on state or local agencies that might otherwise ban lawful crypto activities. |
| Retirement‑plan integration | Requires designated state retirement and savings programs—such as the Hoosier START defined‑contribution plan, public‑employee retirement funds, and teachers’ retirement plans—to offer self‑directed brokerage accounts with at least one cryptocurrency offering. |
| Limits on state regulation | Bars public agencies (except the Department of Financial Institutions) from enacting rules that would forbid accepting crypto payments, self‑custody of assets, or crypto mining, except where expressly carved out. |
| Taxation ban | Prohibits state and local taxes or fees that target lawful crypto transactions or self‑custodied holdings. |
Context and Comparisons
Indiana joins a growing list of states that have taken steps to protect crypto investors. Oklahoma enacted a similar protective framework in November 2024, and Kentucky followed in March 2025. Pennsylvania’s HB 2481, passed by the House in October 2024, still awaits final approval. However, Indiana’s bill is distinctive in its explicit mandate for self‑directed brokerage accounts within state‑run retirement plans—a feature absent from the other state statutes to date.
Potential Impact
For investors: The bill could make digital assets a more mainstream component of retirement planning for Indiana’s public‑sector workers and teachers. By requiring a brokerage option that includes crypto, the state is effectively creating a new avenue for long‑term crypto exposure, which could spur greater participation among risk‑averse investors who prefer the tax‑advantaged environment of retirement accounts.
For the state economy: Allowing crypto payments and mining by private entities may encourage blockchain‑related businesses to set up operations in Indiana, potentially generating jobs and tax revenue. The prohibition on discriminatory taxes also aligns the state’s policy with a broader national push toward a more uniform regulatory landscape for digital assets.
Regulatory considerations: While the bill limits state and local authorities from imposing restrictive rules, it leaves room for the Indiana Department of Financial Institutions to oversee compliance. The legislation does not create a comprehensive crypto licensing regime, but it does signal a permissive stance that could influence future state‑level financial regulations.
Key Takeaways
- Bipartisan support: The 59‑33 vote reflects moderate bipartisan backing, suggesting political momentum for crypto‑friendly legislation in the Midwest.
- First in the nation: Indiana would be the first state to require crypto options within publicly administered retirement plans, positioning it as a pioneer in institutional crypto adoption.
- Implementation timeline: Most measures kick in July 2026; the retirement‑plan component follows a year later, giving plan administrators time to develop the necessary infrastructure.
- Limited scope: The bill curtails local prohibitions on crypto activities but does not create a full regulatory framework; future legislation may be needed to address consumer protection, anti‑money‑laundering, and market integrity concerns.
Outlook
Governor Braun’s decision will be closely watched by crypto stakeholders across the United States. A signature would not only cement Indiana’s role in the emerging ecosystem of crypto‑friendly states but also provide a concrete model for other jurisdictions contemplating the integration of digital assets into public retirement systems. Conversely, a veto could stall the state’s progress and prompt legislators to revisit the bill’s provisions in a subsequent session.
Cointelegraph continues to monitor developments surrounding Indiana’s HB 1042 and will update readers as more information becomes available.
Source: https://cointelegraph.com/news/indiana-crypto-rights-bill-governor-signature?utm_source=rss_feed&utm_medium=feed&utm_campaign=rss_partner_inbound
