Indiana's HB1042 advances legislation to integrate cryptocurrency into retirement plans, offering protected investment options by 2027.
Legislative Action in Indiana to Expand Cryptocurrency Rights
Indiana lawmakers have moved forward with legislation aimed at enhancing cryptocurrency rights and protections, reflecting a growing trend across the United States. House Bill 1042 (HB1042) has been sent to Governor Mike Braun for signature after clearing the legislature with strong support.
Key Provisions of HB1042
### Retirement Plan Integration
HB1042 seeks to integrate cryptocurrency into state retirement plans, a move unique among similar bills in other states. If signed, the legislation will require certain state retirement and savings plans—such as the Hoosier START plan—to offer self-directed brokerage accounts by July 1, 2027. These accounts must include at least one cryptocurrency investment option.
### Investor Protection
The bill aims to safeguard Bitcoin (BTC) and other cryptocurrency users from discriminatory taxes and regulatory crackdowns. It seeks to protect investor rights while ensuring that state agencies do not adopt rules that would hinder lawful crypto transactions or mining operations, except where explicitly exempted by the bill.
Comparisons with Other State Legislation
Indiana's approach stands out in its focus on retirement plans. In November 2024, Oklahoma passed a similar investor protection bill, and Kentucky followed suit in March 2025. Pennsylvania's House Bill 2481 (HB2481), which garnered strong bipartisan support, also targets crypto investor rights but has not yet been signed into law.
Scope of Provisions
### Restrictive State Actions
The legislation prohibits state and local public agencies from adopting or enforcing rules that would ban lawful cryptocurrency transactions, self-custody, or mining. This restriction applies broadly except where the bill explicitly allows such actions. Public agencies will also be barred from regulations that restrict individuals’ ability to accept digital asset payments for goods and services or impose taxes on crypto holdings.
### Mining Operations
Additionally, HB1042 prevents enforcement of rules that would prohibit crypto mining operations for businesses and individuals. This provision aims to support the growing sector without unduly limiting its development.
Conclusion
Indiana's move towards embracing cryptocurrency in retirement plans marks a significant step in aligning state regulations with modern financial trends. If Governor Braun signs the bill, it will further cement Indiana’s position as a forward-looking jurisdiction in the evolving landscape of digital assets and investments.
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