Indiana will permit certain state retirement and savings plans to include cryptocurrency options and has enacted broader legal protections for crypto activities under newly signed legislation. Governor Mike Braun signed House Bill 1042 into law, requiring Indiana’s public retirement and savings plans to offer self‑brokerage accounts with at least one crypto investment option by July 2027.
The mandate applies to the legislators’ defined contribution plan, the Hoosier START plan, specified public employees’ retirement funds, and certain teachers’ retirement fund plans. The bill aims to expand participant access to digital assets within state-managed, participant‑directed accounts.
HB 1042 also adds protections for crypto users and businesses. Public agencies — with the exception of the Department of Financial Institutions — are barred from adopting or enforcing rules that ban crypto payments, self‑custody or mining. The law clarifies that a money‑transmitter license is not required for apps or software protocols that enable non‑custodial transfers. Local governments (counties, municipalities, townships) cannot impose special zoning or other restrictions on crypto mining businesses or home miners that are not applied to similar businesses or activities in the same area.
Institutional and corporate adoption of digital assets has been growing: Bitbo estimates that publicly traded and private companies, ETFs and governments hold more than 3.7 million Bitcoin (about $258 billion). At the federal level, President Donald Trump’s August executive order on “Democratizing Access to Alternative Assets for 401(k) Investors” directed regulators to make alternative assets, including crypto, more accessible in participant‑directed retirement plans. Some analysts, such as Tom Dunleavy of Varys Capital, have suggested even a 1% allocation to crypto in 401(k) plans could generate roughly $120 billion in new inflows.
The law comes as states and localities have grappled with issues tied to mining, including noise complaints and local opposition — for example, residents in Hood County, Texas, attempted last year to form a new municipality in response to noise from a nearby mining operation.
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