Indiana Bitcoin Rights Bill clears legislature, awaits governor’s signature

Indiana lawmakers have passed House Bill 1042, commonly referred to as the Bitcoin Rights Bill, clearing both legislative chambers and sending the measure to Governor Mike Braun for final approval.

Indiana passes Bitcoin Rights Bill as crypto adoption accelerates

If signed into law, the bill will take effect on July 1, 2026, and would allow cryptocurrency investment options within public retirement plans while affirming the rights of individuals to access and use digital assets.

The legislation marks a significant step in formalizing Bitcoin and broader digital asset participation within state-backed financial structures.

The news comes as Arizona lawmakers advanced Senate Bill 1649, which would create a Digital Assets Strategic Reserve Fund allowing the state to hold, invest and potentially lend seized cryptocurrencies.

By permitting exposure to cryptocurrencies in public pension portfolios, Indiana joins a growing list of jurisdictions responding to sustained institutional interest in Bitcoin (BTC), particularly following the strong performance and capital inflows into spot Bitcoin exchange-traded funds over the past several years.

Supporters argue the bill ensures that Indiana’s public institutions and citizens are not disadvantaged as digital assets increasingly become integrated into global financial markets. The measure also reinforces protections for individuals to hold and transact in cryptocurrencies without undue restriction, signaling a pro-innovation stance from state lawmakers.

The push comes amid mounting pressure from financial markets to modernize investment frameworks. Since the launch and expansion of Bitcoin ETFs, institutional adoption has accelerated, prompting policymakers to revisit existing rules around retirement portfolio diversification and digital asset access.

Governor Braun has yet to announce whether he will sign the bill, but if enacted, Indiana would position itself as one of the more crypto-forward states heading into the second half of 2026.