If signed, HB1042 could give residents the ability to diversify retirement portfolios with digital assets
Indiana lawmakers have approved a bill aimed at protecting cryptocurrency users and expanding investment options within state retirement plans. House Bill 1042 passed the legislature with a 59-33 vote and now awaits Governor Mike Braun’s signature.
The legislation would prohibit discriminatory taxes on digital assets and protect investors’ rights to use, hold, and transfer cryptocurrencies like Bitcoin. State and local agencies, with limited exceptions, would be barred from creating rules that restrict crypto payments, self-custody, or mining activities.
A major feature of the bill is its requirement for certain retirement and savings plans to offer self-directed brokerage accounts that include at least one cryptocurrency option. This would allow Hoosiers to hold digital assets as part of their retirement portfolios for the first time.
The mandate applies to state retirement systems, including public employee plans, teachers’ funds, and the Hoosier START savings plan. The provision for self-directed brokerage accounts is scheduled to take effect by July 1, 2027, while most other protections would become active earlier.
Indiana joins a small group of states pursuing crypto investor protection laws. Oklahoma passed a similar measure in November 2024, and Kentucky followed in March 2025. Pennsylvania also approved a bill last year, though it has not yet been signed into law.
The legislation aims to provide legal certainty for crypto users, particularly around taxation and regulatory oversight. By limiting state authority to impose fees or restrict mining, the bill intends to encourage innovation while protecting individual investment choices.
If signed, HB1042 could position the Hoosier State as a more crypto-friendly state while giving residents the ability to diversify retirement portfolios with digital assets. It reflects growing legislative interest in balancing investor protections with market development in the cryptocurrency sector.
