Indiana Invoice Would Mandate Bitcoin in Pensions and Protect Self-Custody Rights

A newly launched invoice in Indiana would require public retirement packages to supply Bitcoin-related funding choices and would additionally restrict how a lot energy native governments have to limit using digital belongings.

The proposal was filed on Thursday by State Consultant Kyle Pierce, a Republican from Anderson. Referred to as Home Invoice 1042, the laws was introduced throughout a gathering of the Home Monetary Establishments Committee.

It focuses on giving public employees entry to cryptocurrency investments whereas setting clear authorized boundaries round digital asset use, custody, funds, and mining.

Indiana Targets First-in-the-Nation Mandate for Bitcoin in Public Pensions

Below the invoice, directors of a number of state-run retirement and financial savings plans could be required to incorporate cryptocurrency exchange-traded funds as normal funding decisions.

It could additionally allow sure public pension funds to speculate straight in crypto-linked ETFs and provides the state treasurer authority to position funds from particular accounts into stablecoin-based ETFs.

Pierce mentioned the invoice is designed to present Indiana residents extra monetary flexibility as digital belongings turn into a bigger a part of the broader economic system.

He added that the laws is meant to steadiness funding alternative with regulatory guardrails whereas permitting the state to discover potential authorities use of blockchain expertise via pilot packages.

The laws goes past retirement investing and takes intention at native regulation. Cities and counties could be prohibited from passing guidelines that place “unreasonable” limits on digital belongings if related guidelines don’t apply to conventional monetary exercise.

That safety would prolong to crypto funds, non-public possession of digital wallets, and mining operations.

The invoice provides clear safeguards for self-custody. It states that personal digital asset keys might solely be demanded via a courtroom order and solely when no different authorized technique of entry is accessible.

It could additionally stop native governments from zoning out mining services from industrial zones and would defend correctly zoned residential mining exercise.

If enacted, Indiana would turn into the primary state within the nation to require publicly managed retirement packages to offer Bitcoin publicity as a typical choice.

Whereas some states allow restricted crypto funding flexibility, none at the moment mandate it.

U.S. States Broaden Crypto Entry in Pensions, Funds, and Property Legal guidelines

Different states have taken associated however narrower steps. Oklahoma handed a legislation in 2024 defending residents’ proper to carry crypto in self-custody wallets and blocking particular taxes on Bitcoin transactions.

In 2025, Kentucky adopted by formally recognizing self-custody as a protected property proper. Wyoming has additionally authorized legal guidelines that enable public pension funds to put money into digital belongings.

Elsewhere, Arizona launched laws that will enable Bitcoin ETFs in retirement accounts, whereas Florida outlined authorized pathways for holding digital belongings via ETFs in sure state funds.

Indiana’s proposal stands aside by making crypto ETF entry a requirement moderately than a alternative.

Momentum round crypto-linked retirement publicity continues to construct nationwide. In August, Michigan’s state retirement system tripled its Bitcoin ETF holdings to 300,000 shares, valued at about $11.4 million, in keeping with regulatory filings.

The fund additionally holds roughly $13.6 million in Ethereum via the Grayscale Ethereum Belief. Wisconsin’s state funding board has additionally disclosed greater than $387 million in Bitcoin ETF publicity.

States are additionally widening their use of digital belongings exterior of investing. In September, Ohio finalized plans to simply accept Bitcoin and different cryptocurrencies for official state funds.

In October, California up to date its Unclaimed Property Regulation to make sure dormant crypto isn’t robotically transformed into money when

transferred to state custody.

New York Metropolis has taken its personal steps by establishing a municipal Workplace of Digital Property and Blockchain.

The transfer adopted an government order from Mayor Eric Adams geared toward coordinating crypto coverage and inspiring blockchain improvement.

On the federal stage, broader regulatory efforts are additionally underway. Lawmakers are getting ready new frameworks that would form how states method crypto coverage, together with up to date steering on 401(okay) crypto publicity anticipated in 2026.

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