Governor Mike Braun signed House Bill 1042 into law last week, requiring Indiana's public defined contribution retirement plans to offer cryptocurrency investments via self-directed brokerage accounts by July 1, 2027. The legislation, targeting plans like Hoosier START, also prohibits most state agencies from restricting digital asset payments or mining, marking a pro-crypto push amid national trends.
Introduced by State Rep. Kyle Pierce (R-Anderson) in December 2025, House Bill 1042 advanced through hearings proposing indirect crypto exposure via ETFs before finalizing direct options through self-directed brokerage windows. Signed by Gov. Mike Braun in early March 2026, the law mandates the Indiana Public Retirement System (INPRS) to provide at least one cryptocurrency investment option in specified plans, including Hoosier START (457(b) and 401(a) plans for public employees), the state legislators' defined contribution plan, and funds for certain public employees and teachers.
A February report from the state's Legislative Services Agency highlighted increased workload for the INPRS board and deferred compensation committee, necessitating new rules for the program. Pierce described the bill as offering 'more investment choices while establishing guardrails.'
Beyond retirement plans, HB 1042 prohibits state agencies and local governments—except the Indiana Department of Financial Institutions—from discriminating against cryptocurrency. This includes banning unique taxes on digital assets, blocking their acceptance as payment, or restricting blockchain activities like mining and transactions. Private keys securing digital assets are protected, with court disclosure compelled only if no other evidence suffices.
The measure aligns with broader efforts, such as President Donald Trump's August executive order encouraging private asset investments in 401(k) plans, and establishes a framework for regulated crypto diversification in public savings, potentially including Bitcoin.
Experts offered mixed reactions. Matt Petersen, executive director of the National Association of Government Defined Contribution Administrators, called it 'unusual' for mandating specific investments in brokerage windows, noting, 'About 1% of all money is in the [brokerage] window, so I don’t expect this one to have much of an effect.' Anthony Randazzo, founder and CEO of the Equable Institute, deemed it 'curious' and political, as it intervenes in fiduciary processes for a niche asset class. He anticipates copycat legislation, citing Missouri's H.B. 2080 for a Bitcoin Strategic Reserve Fund.
