Indiana lawmakers have introduced HB1042, a proposal to allow — and in some cases require — public retirement and savings plans to offer exposure to cryptocurrency through exchange-traded funds (ETFs). The measure would make crypto ETF options available across many state-managed plans and permit additional plans to opt in voluntarily.
The bill also calls for creation of a Blockchain and Digital Assets Task Force charged with studying government and consumer uses of distributed ledger technology and digital assets, and recommending pilot projects for possible state implementation.
HB1042 includes provisions intended to protect lawful digital-asset activity: it would prevent state and local agencies from banning the legal use of digital assets, mining, or self-custody, and would treat private keys as privileged information. Backers say the bill is designed to encourage crypto innovation while preserving investment prudence, oversight, and regulatory compliance for public funds.
The push in Indiana echoes a broader trend among states exploring digital assets within public investment programs as Bitcoin and other cryptocurrencies gain institutional acceptance. At the federal level, proposals such as the BITCOIN Act have surfaced, but U.S. Treasury officials have indicated there are no current plans for federal Bitcoin purchases, leaving room for states to pursue their own approaches to pension fund allocations into crypto.
If enacted, HB1042 would expand the investment menu available to public-plan participants and prompt further discussion about fiduciary responsibilities, risk management, custody arrangements, and regulatory clarity as governments weigh how to incorporate digital assets into traditional pension frameworks.