Lawmakers in Indiana have sent a crypto-focused bill to Governor Mike Braun that would broaden legal protections for digital asset users and require certain state retirement and savings plans to include a self-directed brokerage option offering at least one cryptocurrency investment choice.
House Bill 1042 (HB1042), titled “regulation and investment of cryptocurrency,” passed the legislature on Wednesday with a 59–33 vote, according to data from Legiscan.
The measure aims to safeguard the rights of Bitcoin and other cryptocurrency investors, prohibit discriminatory taxation targeting digital assets, and permit digital asset exposure within state-managed retirement plans.
The bill now awaits Braun’s signature. If enacted, most provisions would take effect July 1, while the requirement for retirement plans to provide a self-directed brokerage option would be implemented at a later date.
Several US states have already enacted crypto investor protection measures, including Oklahoma in November 2024 and Kentucky in March 2025.
In Pennsylvania, House Bill 2481 (HB2481), focused on crypto investor rights, passed in October 2024 with strong bipartisan backing but has not yet been signed into law.
Indiana’s legislation stands apart as the only proposal among them to mandate self-directed brokerage accounts aimed at facilitating crypto exposure within retirement plans. If enacted, the bill would allow Indiana residents to hold Bitcoin and other digital assets in qualifying retirement accounts for the first time.
Under the proposal, certain state retirement and savings plans would be required to offer self-directed brokerage accounts with at least one cryptocurrency investment option by July 1, 2027. The mandate would apply to the legislators’ defined contribution plan, the Hoosier START program, specified public employees’ retirement funds and designated teachers’ retirement fund plans, among others.
The legislation also contains broader safeguards designed to shield crypto users from potential future regulatory overreach.
State rules limited on crypto
Under the proposal, Indiana would limit the authority of state and local public agencies to restrict lawful cryptocurrency activity.
Specifically, public agencies — with the exception of the Indiana Department of Financial Institutions — would be barred from adopting or enforcing rules that:
- Prohibit individuals from accepting digital assets as payment for lawful goods and services;
- Restrict a person’s ability to self-custody their crypto holdings; or
- Impose targeted taxes or fees on crypto payments or self-custodied assets.
The bill also prevents the enforcement of regulations that would ban cryptocurrency mining activities conducted by businesses or individuals within the state.
Together, these provisions aim to establish statutory protections for payments, self-custody and mining, limiting the scope for future state-level crackdowns on digital asset use.
