Indiana gives green light for state retirement plans to buy into crypto investments

Indiana Governor Mike Braun signed House Bill 1042 on Tuesday, authorizing certain pension systems to invest in cryptocurrency. The legislation, titled “Regulation and Investment of Cryptocurrency,” directs several state-managed plans, including the Hoosier START savings initiative, to add a brokerage window allowing participants to choose at least one cryptocurrency investment. 

The law also establishes guardrails on how local and state agencies can regulate or tax digital asset transactions. 

The move comes as Bitcoin hovered around $71K over the past 24 hours as Indiana officially enacted a landmark bill protecting digital asset rights.

Governor Mike Braun signed House Bill 1042, titled Regulation and Investment of Cryptocurrency, into law, making Indiana one of the first U.S. states to formally safeguard Bitcoin users while integrating crypto-linked products.

House Bill 1042 includes provisions to remove unnecessary taxation

Under the new law, ETFs may be added to plan menus, but stablecoin-backed products are excluded due to ambiguity surrounding their returns. Pension providers are also required to incorporate digital asset provisions no later than July 1, 2027.

The legislation also includes provisions shielding crypto participants from targeted taxation, ensuring no added levies are placed on legitimate crypto transactions or self-hosted wallet users. It also protects crypto mining zones from undue regulatory interference.

Additionally, the law characterizes digital assets as cryptographically secured digital currencies not controlled by any central authority, which proponents argue gives residents and businesses clearer legal guidance.

Still, it dictates that Indiana’s Department of Financial Institutions retain regulatory authority over digital asset supervision in the state.

Aside from Indiana, other states have taken the initiative to include crypto in pension services. For instance, Wisconsin’s pension fund has grown its Bitcoin exposure to around $321 million, while Michigan’s retirement system holds $45 million in BTC and ETH ETFs.

President Trump also signed an executive order last August authorizing 401(k) retirement plans to include cryptocurrency holdings.

Currently, Bitcoin is showing impressive gains, trading at $71,522. The asset has jumped, positioning Indiana among the first U.S. states to formally safeguard digital asset rights, rising nearly 8% over the last 24 hours with the enactment of HB 1042.

Indiana also approved a bill to ban crypto ATMs

Indiana’s legislature also recently passed House Bill 1116, a crypto-related law banning crypto ATMs that is now pending the governor’s signature. During a 45-0 vote last February, the Senate passed legislation to ban all digital currency kiosks. Initially, the bill was intended to regulate crypto ATMs due to scams, but the committee modified it after Sen. Scott Baldwin declared the machines had no legitimate purpose.

Rep. Wendy McNamara had even described crypto ATMs as a “powerful tool for scammers to prey on seniors and people in crisis.” She added, “These victims often believe they’re paying a bill, helping a loved one, or protecting their savings — when, in reality, they’re being manipulated into sending money to criminals.”

“We are currently living in a ‘scamdemic,’” said Sgt. Nathan VanCleave, who works on the Evansville Police Department’s financial crimes unit. “… They are on steroids because of cryptocurrency.”

In 2025, Evansville, Ind., residents were victims of about $400,000 in kiosk-related scams, local authorities said. The Massachusetts Attorney General also filed suit against Bitcoin Depot, claiming the company’s kiosks were used to facilitate fraudulent activities.

Not to mention, in the first half of 2025, Americans lost an estimated $240 million to crypto ATM scams, with the FBI noting that 2024 saw close to 11,000 complaints—a 99% year-over-year increase.

Sharpen your strategy with mentorship + daily ideas - 30 days free access to our trading program