Indiana lawmakers are pushing House Bill 1042 to allow state pension and savings plans to invest in cryptocurrency exchange-traded funds while preventing local restrictions on digital asset activities. The proposal, introduced by Rep. Kyle Pierce, received an early hearing amid growing national interest in crypto. It aims to position the state as a leader in blockchain technology without permitting direct crypto purchases.
On December 4, 2025, the Indiana House Financial Institutions Committee held an early hearing on House Bill 1042, signaling strong Republican interest in cryptocurrency amid discussions on redistricting. The bill, authored by Rep. Kyle Pierce, R-Anderson, would enable indirect exposure to digital assets like Bitcoin through federally regulated exchange-traded funds (ETFs), rather than direct purchases.
Affected programs include the 529 education savings plan, Hoosier START plan, and retirement systems for teachers, public employees, and lawmakers. Other state funds, including those managed by the state treasurer, could invest in crypto ETFs and stablecoin ETFs. Tony Green, deputy executive director of the Indiana Public Retirement System, expressed neutrality during testimony but emphasized the need for clear disclaimers on volatility, noting limited member interest in such options.
Pierce highlighted the bill's cautious approach: “Digital assets are quickly becoming part of everyday finances, and Indiana should be ready to engage in a smart, responsible way.” He added, “Crypto policy will become a mainstay of this committee’s work for probably years to come.”
Beyond investments, the legislation restricts state agencies and local governments from enacting rules targeting crypto use, mining operations, or self-custody. It prohibits taxing digital currency payments or denying mining facilities in industrial zones with crypto-specific noise restrictions. Private keys would be protected as privileged information.
The bill also establishes a Blockchain and Digital Assets Task Force to study government and consumer applications, recommending pilot projects. Local crypto mining operator Ilya Rekhter of Megawatt supported the measure, stating, “We’re not asking for any special treatment, just the same treatment.” No vote is expected until January 2026.
This push aligns with national trends, including Texas's recent $5 million Bitcoin ETF purchase and federal crypto legislation earlier in 2025.
