Indiana’s House Bill 1042, titled “Regulation and Investment of Cryptocurrency,” represents a significant step in embracing digital assets within the state’s public financial systems and protecting individual rights related to cryptocurrency.

Introduced by Republican Rep. Kyle Pierce in late 2025 during the 2026 legislative session, the bill advanced through both chambers of the Indiana General Assembly. It received bicameral approval in late February 2026 (with the House concurring on Senate amendments by a 59-33 vote) and was signed into law by Governor Mike Braun on March 3, 2026.

Key Provisions

  • Crypto Options in Public Retirement and Savings Plans
    The bill requires certain state-administered plans to offer participants a self-directed brokerage account that includes at least one cryptocurrency investment option (such as through exchange-traded funds or similar vehicles). This applies to:
    • The legislators’ defined contribution plan
    • The Hoosier START college savings plan
    • Specified accounts under the Indiana Public Retirement System (INPRS), including public employees’ retirement funds and teachers’ retirement funds (including the pre-1996 teachers’ account)
    This change aims to give public employees, teachers, legislators, and families saving for college greater access to digital assets as part of their investment choices.
  • Protections for Individual Crypto Use
    HB 1042 prohibits most public agencies (except the Department of Financial Institutions), as well as counties, municipalities, and townships, from enacting rules, ordinances, or regulations that:
    • Restrict or impair an individual’s right to accept digital assets (like Bitcoin or stablecoins) as payment for legal goods and services
    • Limit custody or self-custody of digital assets using self-hosted wallets, hardware wallets, or similar technologies
    • Impose special taxes or fees on crypto transactions or custody that don’t apply to comparable non-crypto financial activities
    These measures effectively establish baseline “crypto rights” at the state and local level, preventing discriminatory local restrictions.

The bill’s main provisions take effect on July 1, 2026, positioning Indiana as one of the more crypto-friendly states by integrating digital assets into public institutional frameworks while safeguarding personal freedoms in the space. Supporters view it as a forward-thinking move to modernize investment options and align with growing mainstream adoption of cryptocurrency.