Indiana Senate Panel Advances Bill Allowing Crypto in State Retirement Plans

Indiana lawmakers have moved a step closer to integrating cryptocurrency into public retirement systems.

On February 12, 2026, a Senate committee advanced House Bill 1042 (HB1042), legislation that would allow certain state-managed retirement programs to offer cryptocurrency investment options.

The bill, formally titled Engrossed House Bill No. 1042, focuses on the regulation and investment of digital assets within structured retirement frameworks.

What HB1042 Would Change

Under the proposal, several state-administered retirement plans would be required to offer, as part of a regular investment program, a self-directed brokerage account that includes at least one cryptocurrency investment option.

The affected plans include:

• Legislators’ defined contribution plans
• The Hoosier START plan
• Specified public employees’ retirement fund plans
• Specified teachers’ retirement fund plans, including pre-1996 accounts

The legislation also limits the ability of counties, municipalities, and townships to adopt or enforce separate rules that would restrict cryptocurrency offerings beyond state-level regulation.

If enacted, the measure would take effect on July 1, 2026.

Legislative Progress

HB1042 previously passed the Indiana House with a vote of 53–42. After being referred to the Senate Committee on Insurance and Financial Institutions, it was amended and reported favorably on February 12.

The advancement signals growing state-level openness toward digital assets as part of long-term retirement strategies.

Broader Context

The proposal reflects a wider trend among U.S. states exploring structured crypto exposure through regulated investment channels rather than direct asset custody. By embedding digital assets into self-directed brokerage frameworks, the bill maintains individual investor discretion while preserving oversight within established retirement systems.

If ultimately approved by the full Senate and signed into law, Indiana would join a small but expanding group of jurisdictions formally integrating cryptocurrency options into public retirement infrastructure.

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