Similar measures are emerging in other U.S. states, marking a shifting policy landscape.
Indiana Governor Mike Braun has signed into law a bill granting state employees the option to invest a portion of their retirement and savings plans in Bitcoin and other cryptocurrencies. Braun, who moved from the U.S. Senate to the Indiana governor’s office in 2023, is now taking a hands-on role in spearheading the state’s financial reforms.
What Does the Law Include?
Under the new legislation, Indiana’s public sector retirement boards and savings programs must offer participants at least one cryptocurrency investment option within their self-managed accounts. The rollout is slated for July 1, 2027. State employees will be able to allocate a portion of their contributions to Bitcoin, other crypto assets, or exchange-traded funds (ETFs) linked to digital currencies. The responsibilities of setting investment rules and oversight mechanisms will fall to the administrators of the respective retirement plans.
ContentsWhat Does the Law Include?Investment Choices and OversightOther U.S. States Take Similar StepsInvestment Choices and Oversight
The framework enables retirement account holders to manage crypto asset portfolios alongside traditional instruments such as stocks, bonds, and conventional ETFs. Decisions on investment limits, transaction fees, and asset valuation will be determined by the retirement funds’ management bodies. The law defines crypto assets as decentralized, cryptographically secured digital currencies that are not issued by any government or central authority. Indiana state legislators noted that this clear definition enhances transparency for public investment programs evaluating digital assets.
The Indiana assembly characterized cryptocurrency as an asset not managed from a central point, controlled through encryption, and widely accepted as a medium of exchange in digital environments. In their view, “Providing an explicit definition helps reduce uncertainty in the state investment programs’ assessments of these assets.”
With the adoption of the law, state employees will have the flexibility to diversify their retirement portfolios, mixing traditional and digital assets according to their preferences. Meanwhile, retirement fund managers retain the authority to enforce limits on asset allocation to uphold portfolio diversification and manage risk prudently.
Other U.S. States Take Similar Steps
Indiana’s move places it among a growing group of U.S. states acting to incorporate digital assets into public portfolios. In recent months, several states have proposed or enacted similar measures. South Dakota, for instance, has introduced legislation that would permit public funds to allocate up to ten percent of their holdings to Bitcoin investments.
In Rhode Island, lawmakers have put forward a bill that would temporarily exempt small-scale Bitcoin transactions from state income and capital gains taxes. This pilot, if approved, would suspend taxation for qualifying individual transactions below a set threshold for one year.
Meanwhile, beginning in May 2025, New Hampshire has authorized its Treasury Department to invest up to five percent of state portfolio assets in Bitcoin and other high-market-cap digital currencies. Such moves underscore the rising interest among state governments in integrating digital assets into the management of public funds.
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