Indiana Lawmakers Introduce Bill for Public Investment in Bitcoin

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Key Takeaways

Indiana's House Bill 1042 allows public funds to invest in Bitcoin and cryptocurrency ETFs.
The bill updates investment strategies for various public retirement and savings programs.
Local governments are restricted from imposing rules that would limit the use of digital assets.
Indiana joins other states like Arizona, Florida, and Texas in exploring Bitcoin investments.

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Summary:
Indiana lawmakers have proposed a new bill aimed at allowing public funds to invest in Bitcoin and other cryptocurrency-related assets. This initiative seeks to modernize the state’s approach to public retirement and savings programs while also fostering a broader acceptance of digital assets throughout the state.

Overview of the Proposed Legislation

Indiana lawmakers have introduced House Bill 1042, which would enable public funds in the state to invest in Bitcoin. This legislative push began on December 2, 2025, led by Representative Kyle Pierce, with support from co-sponsors Representatives Jake Teshka, Christopher Judy, and Heath VanNatter. Currently, the bill is under consideration by the House Committee on Financial Institutions.

Details of House Bill 1042

The bill focuses on modernizing how Indiana manages public savings and retirement investments. It mandates that administrators of major defined-contribution plans, employee retirement systems, and the state's 529 education plan incorporate cryptocurrency ETFs into their investment options.

Additionally, the measure extends the option for judges’ and prosecutors’ pension systems, law enforcement retirement programs, and other employee benefit funds to invest in crypto ETFs if their managers choose to do so.

HB 1042 also broadens the state treasurer's powers by permitting certain trust and benefit funds to invest in stablecoin ETFs. Apart from investment provisions, the legislation aims to establish a unified state framework for the usage of digital assets. This framework prohibits local governments from enacting rules that would restrict residents from holding or utilizing digital currencies. Local taxes, fees, zoning laws, and noise restrictions that disproportionately affect crypto mining activities will also be banned.

Notably, the bill specifies that individuals using non-custodial or self-custody wallet software are not classified as money transmitters under state law. In legal scenarios, judges may only access an individual's private key if no other evidence can unlock the digital asset.

Rising Support for Bitcoin in U.S. States

This proposal positions Indiana among several U.S. states that have recently expressed support for Bitcoin investment. Following the crypto-friendly policies of the Donald Trump administration, states such as Arizona have begun to explore Bitcoin ETFs for diversity in their retirement systems.

In November 2024, Pennsylvania proposed allowing its state treasurer and public pension funds to allocate up to 10% of certain assets to Bitcoin. Similarly, Florida introduced a plan in October 2025, empowering its CFO and State Board of Administration to invest a portion of public funds into Bitcoin, including the Florida Retirement System Trust Fund.

New Hampshire took a more definitive action in May 2025 when Governor Kelly Ayotte approved a bill permitting the state treasury to allocate up to 5% of eligible reserves into digital assets with market caps over $500 billion, a category that currently includes only Bitcoin. Texas also initiated its strategy by creating the Texas Strategic Bitcoin Reserve and granting its comptroller authority to invest $10 million in public funds into Bitcoin, allocating $5 million to the BlackRock Bitcoin ETF late last month.

Disclaimer: This article serves an informational purpose only and should not be regarded as financial advice. The opinions expressed herein reflect those of the author and do not necessarily represent the views of The Crypto Basic. Readers should undertake careful research before making financial decisions. The Crypto Basic is not liable for any financial losses.