Indiana to enact bill allowing crypto investments in retirement plans after governor's sign-off

Indiana Governor Mike Braun signed House Bill 1042 into law on Tuesday, advancing a measure that allows certain state retirement programs to gain crypto exposure.

The legislation, introduced by Rep. Kyle Pierce, received bicameral approval during the legislative session on Feb. 25 and was signed into law on March 3, according to the governor's bill watch website.

HB 1042 requires several public savings and retirement plans — including the legislators' defined contribution plan, the Hoosier START education savings program and certain public employee and teacher retirement accounts — to offer a self-directed brokerage option that includes at least one crypto investment product.

Under the law, plan administrators must provide access to crypto-linked investments by July 1, 2027, according to the bill text. 

Beyond investment access, the bill also establishes protections for crypto asset users. It bars state and local authorities from imposing special taxes or fees on the use of crypto as payment for lawful goods and services, or on individuals who maintain custody of their assets through self-hosted wallets.

The passage of HB 1042 reflects a broader nationwide push to integrate bitcoin and other crypto assets into traditional financial systems. At the federal level, President Donald Trump last August signed an executive order permitting 401(k) retirement plans to include crypto investments.

Indiana lawmakers have also advanced a separate crypto-related bill that still awaits the governor's signature. House Bill 1116, which passed the legislature last week, would prohibit the operation of virtual currency kiosks, commonly known as crypto ATMs, across the state.