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In a groundbreaking legislative move, Indiana State Representative Kyle Pierce (R-Anderson) has introduced a bill that would make cryptocurrency investment options a standard feature in the state's public retirement and savings programs.
Formally known as House Bill 1042, the legislation would require the administrators of several key state plans to offer cryptocurrency exchange-traded funds (ETFs) as regular investment choices. This mandate would apply to the retirement plans for public employees and teachers, the legislators' own defined contribution plan, and even the Indiana 529 education savings plan.
"For everyday Hoosiers, this is about choice," said Representative Pierce, emphasizing that digital assets are becoming a regular part of the financial landscape. "This bill gives Hoosiers more investment choices while establishing guardrails".
The bill’s scope extends beyond mandating options for individual savers. It would also explicitly permit certain state pension funds, like those for judges and public safety officers, to invest their pooled assets directly into crypto ETFs. Furthermore, it authorizes the state treasurer to invest assets from specific state-held funds into ETFs tied to stablecoins.
If passed, Indiana would become the first state in the nation to require publicly managed retirement programs to provide Bitcoin exposure as a standard option.
A Broader Push for Crypto Clarity and Rights
House Bill 1042 is not solely about investments; it's a comprehensive effort to define Indiana's approach to digital assets. A significant portion of the legislation aims to prevent local governments from creating a patchwork of restrictive rules.
It would prohibit cities and counties from adopting ordinances that "unreasonably" restrict digital asset payments, self-custody of crypto using private wallets, or cryptocurrency mining, especially when similar traditional activities are allowed. The bill also includes strong protections for self-custody, stating that an individual's private cryptographic keys could only be compelled by a court order if no other method can provide access to the assets.
To study the technology's potential further, the bill proposes creating a Blockchain and Digital Assets Task Force. This group would evaluate uses for state government and consumer protection, ultimately recommending pilot projects for blockchain technology in Indiana.
The National Context: States Forge Their Own Path
Indiana's proposal is part of a growing trend of state-level crypto policy innovation. While states like Wyoming have passed laws allowing public pensions to invest in digital assets, and Arizona has considered bills for Bitcoin ETFs in retirement accounts, Indiana's mandate would be the most assertive step yet.
Other states are exploring related avenues. Texas recently became the first state to purchase Bitcoin directly through a spot ETF for a state-held strategic reserve. Meanwhile, Ohio has finalized plans to accept cryptocurrency for state payments, and Kentucky has formally recognized the right to self-custody digital assets.
The move in Indiana reflects a wider political and financial shift, with digital assets gaining backing from national leaders and major institutions. As federal regulators continue to develop broader frameworks, states like Indiana are not waiting to establish their own rules and provide access for their residents.
The bill received its first hearing in the House Financial Institutions Committee on December 4, 2025. The committee is not expected to vote on the proposal until the legislative session resumes in January.

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