On February 13, Indiana lawmakers announced adding cryptocurrency to public retirement plans after a Senate committee approved House Bill 1042. The bill would allow digital assets to be offered as an investment option within state-managed retirement programs.
It will now move to the full Senate for further review and voting.
Indiana Crypto Pension Bill Advances in Senate Committee
According to the committee filing and legislative update, House Bill 1042 has cleared an Indiana Senate committee after amendments and now heads to the full Senate for voting.
If the bill becomes law, starting July 1, 2026, public employee plans like Hoosier START must offer self-directed brokerage accounts. Through these accounts, workers can choose to invest part of their retirement savings in approved crypto products.
The state will not directly buy cryptocurrency. Instead, employees can decide for themselves whether they want crypto exposure, based on their own risk level and investment goals.
Indiana’s public pension funds are managed by the Indiana Public Retirement System, which oversees about $55 billion in assets.
How the Bill Adds Crypto Options to Retirement Plans
Under House Bill 1042, some state retirement and savings plans would offer self-directed accounts with crypto investment options. It works like a brokerage window where people pick their own investments based on their risk level.
The bill also sets one clear rule across Indiana for crypto activity. Local governments would not be allowed to block or limit legal crypto payments, custody services, or mining operations. This avoids different rules in different cities and keeps crypto regulations consistent across the state.
Crypto ETF Access Allowed, Stablecoin Funds Excluded
The measure also permits state pension funds to invest in cryptocurrency ETFs, but excludes funds mainly tied to stablecoins. Lawmakers added this filter so retirement exposure stays linked to market-traded crypto assets rather than dollar-pegged tokens.
Supporters say ETF-based access gives regulated exposure while avoiding the operational risks of directly holding tokens.
Other U.S. States Also Moving Toward Crypto Pension Exposure
Indiana is not the only state exploring crypto options for public funds and retirement plans. States like New Hampshire, Texas, North Carolina, and Oklahoma have also introduced or moved forward with similar proposals.
Some of these plans allow limited crypto exposure for public funds, while others focus on giving retirement account holders more investment choice.
At present, the bill now heads to the full Senate for a final vote. If senators approve it, the next and last step is the Governor’s signature for it to become law.
