|

Indiana Bill Would Mandate Bitcoin in Pensions and Shield Self-Custody Rights

A newly launched invoice in Indiana would require public retirement applications to supply Bitcoin-related funding choices and would additionally restrict how a lot energy native governments have to limit the usage of digital property.

The proposal was filed on Thursday by State Representative Kyle Pierce, a Republican from Anderson. Known as House Bill 1042, the laws was offered throughout a gathering of the House Financial Institutions Committee.

It focuses on giving public employees entry to cryptocurrency investments whereas setting clear authorized boundaries round digital asset use, custody, funds, and mining.

Indiana Targets First-in-the-Nation Mandate for Bitcoin in Public Pensions

Under the invoice, directors of a number of state-run retirement and financial savings plans can be required to incorporate cryptocurrency exchange-traded funds as normal funding selections.

It would additionally allow sure public pension funds to speculate straight in crypto-linked ETFs and give the state treasurer authority to put funds from particular accounts into stablecoin-based ETFs.

Pierce stated the invoice is designed to present Indiana residents extra monetary flexibility as digital property develop into a bigger a part of the broader financial system.

He added that the laws is intended to stability funding alternative with regulatory guardrails whereas permitting the state to discover potential authorities use of blockchain expertise by means of pilot applications.

Source: Indiana House Republicans

The laws goes past retirement investing and takes goal at native regulation. Cities and counties can be prohibited from passing guidelines that place “unreasonable” limits on digital property if comparable guidelines don’t apply to conventional monetary exercise.

That safety would lengthen to crypto funds, private ownership of digital wallets, and mining operations.

The invoice provides clear safeguards for self-custody. It states that non-public digital asset keys may solely be demanded by means of a court docket order and solely when no different authorized methodology of entry is out there.

It would additionally forestall native governments from zoning out mining amenities from industrial zones and would defend correctly zoned residential mining exercise.

If enacted, Indiana would develop into the primary state in the nation to require publicly managed retirement applications to offer Bitcoin publicity as an ordinary choice.

While some states allow restricted crypto funding flexibility, none at present mandate it.

U.S. States Expand Crypto Access in Pensions, Payments, and Property Laws

Other states have taken associated however narrower steps. Oklahoma passed a legislation in 2024 defending residents’ proper to carry crypto in self-custody wallets and blocking particular taxes on Bitcoin transactions.

In 2025, Kentucky followed by formally recognizing self-custody as a protected property proper. Wyoming has additionally accepted legal guidelines that enable public pension funds to speculate in digital property.

Elsewhere, Arizona introduced legislation that would allow Bitcoin ETFs in retirement accounts, whereas Florida outlined authorized pathways for holding digital property by means of ETFs in sure state funds.

Indiana’s proposal stands aside by making crypto ETF entry a requirement relatively than a alternative.

Momentum round crypto-linked retirement publicity continues to construct nationwide. In August, Michigan’s state retirement system tripled its Bitcoin ETF holdings to 300,000 shares, valued at about $11.4 million, in response to regulatory filings.

The fund additionally holds roughly $13.6 million in Ethereum by means of the Grayscale Ethereum Trust. Wisconsin’s state funding board has additionally disclosed greater than $387 million in Bitcoin ETF publicity.

States are additionally widening their use of digital property outdoors of investing. In September, Ohio finalized plans to accept Bitcoin and other cryptocurrencies for official state funds.

In October, California updated its Unclaimed Property Law to make sure dormant crypto is just not mechanically transformed into money when

transferred to state custody.

New York City has taken its own steps by setting up a municipal Office of Digital Assets and Blockchain.

The transfer adopted an govt order from Mayor Eric Adams aimed toward coordinating crypto coverage and encouraging blockchain growth.

At the federal degree, broader regulatory efforts are additionally underway. Lawmakers are getting ready new frameworks that might form how states strategy crypto coverage, together with updated guidance on 401(k) crypto exposure anticipated in 2026.

The put up Indiana Bill Would Mandate Bitcoin in Pensions and Shield Self-Custody Rights appeared first on Cryptonews.

Similar Posts