US State of Indiana Advances Crypto Retirement Access Bill

On February 12, 2026, the state Senate Committee on Insurance and Financial Institutions advanced a modified version of House Bill 1042 in a 6-2 vote. The updated draft narrows the bill’s original ambitions, shifting responsibility from state investment managers to individual employees.

Crypto Access Through Self-Directed Accounts

Under the amended version, certain state-managed plans – including Hoosier START, the Legislators’ Defined Contribution Plan, and selected teacher and public employee funds – would be required to offer at least one cryptocurrency investment option.

However, access would only be available through self-directed brokerage windows. That means public workers could choose crypto exposure themselves, but the state would not actively allocate pension assets into digital assets on their behalf.

A prior proposal allowing direct state investment into crypto exchange-traded funds was removed during committee discussions. Bill sponsor Rep. Kyle Pierce indicated that broader state-level exposure requires further review, particularly given recent market volatility.

If approved by the full Senate and signed into law, the requirement to make crypto brokerage options available would take effect July 1, 2026.

A “Crypto Bill of Rights” Beyond Pensions

House Bill 1042 extends beyond retirement plans and includes several protections for digital asset users across Indiana.

The measure would prevent local governments from banning crypto mining operations in properly zoned industrial areas. It would also restrict municipalities from placing what lawmakers describe as unreasonable barriers on the use of digital assets for lawful payments.

In addition, the bill affirms the right to self-custody digital assets. Courts would only be permitted to compel disclosure of a private key if no other admissible evidence could satisfy legal requirements.

At the same time, lawmakers advanced a separate proposal that would prohibit cryptocurrency ATMs in the state, citing concerns about fraud and money laundering risks associated with kiosk-based transactions.

A More Conservative Model Than Other States

Indiana’s framework differs from approaches seen in other states. While some jurisdictions have allowed public pension systems to directly hold Bitcoin or Ethereum exchange-traded funds, Indiana is opting for a more insulated structure.

The Indiana Public Retirement System, which oversees roughly $55 billion in assets, has maintained a neutral stance after collaborating with lawmakers to refine the bill’s language.

By focusing on individual choice instead of centralized allocation, Indiana aims to give public employees access to digital assets while shielding the broader pension system from direct market risk.

The bill now moves to the full Senate for further debate and a final vote.

The information provided in this article is for educational purposes only and does not constitute financial, investment, or trading advice. Coindoo.com does not endorse or recommend any specific investment strategy or cryptocurrency. Always conduct your own research and consult with a licensed financial advisor before making any investment decisions.

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