Indiana Signs Bitcoin Bill Into Law Allowing Crypto in Retirement Plans

Indiana has enacted a bill protecting Bitcoin rights and permitting the use of crypto assets for its retirement plans. This is as different states across the US continue to embrace crypto use in their investment policies.

Indiana Boosts Crypto Policy with Bitcoin Rights Bill

Governor Mike Braun has signed into law the House Bill 1042, titled ‘Regulation and Investment of Cryptocurrency.’ This makes it the first state in the US to accept and legalize the use of Bitcoin and other digital currencies in its retirement and savings plans.

HB 1042 stipulates that various public plans for savings and retirement shall provide a self-directed brokerage option with at least one crypto investment product. According to the Indiana Bitcoin rights bill, it is essential for plan administrators to provide access to crypto-linked investment products by July 1, 2027.

This comes as more states in the U.S. are embracing BTC as part of their investment portfolios. For example, states such as Missouri are moving to implement a Bitcoin strategic reserve plan.

Apart from this, the bill also protects those using crypto assets in the state. For example, the bill protects them from special taxes and fees charged by the state and local governments. This is in cases such as the purchase of legal goods and services or where people choose to self-host their own assets.

There is another bill in relation to Bitcoin and crypto assets, and this is being pushed by Indiana lawmakers. The state legislature has already voted last week on House Bill 1116, which prohibits the use of crypto ATMs.

Crypto in Retirement Plans Gains Momentum in the U.S.

Since last August, when Trump signed an executive order permitting 401(k) retirement plans to invest in crypto assets, more states have rushed to pass similar laws.

More recently, SEC Chair Paul Atkins backed limited crypto access for 401(k) plans. He stated that it is possible if professional managers and trustees use strict safeguards. However, he stated that protections for retirees need to guide every decision.

The recently proposed Indiana Bitcoin bill is creating mixed emotions among the crypto community following its enactment. First, it was justified based on its similarity to the US strategic bitcoin reserve and pensioners’ freedom.

However, there is concern over the financial risk of dabbling in these highly volatile financial instruments, especially during the current crypto market crash.

It is also worth noting that the state had been pushing for this bill since early 2025. At the time, they proposed a bill for retirement plans’ exposure to Bitcoin ETFs.