Indiana Governor signs bill allowing Bitcoin in state retirement plans

Indiana Governor signs bill allowing Bitcoin in state retirement plans

Indiana Governor Mike Brown signed a bill allowing investments in Bitcoin and cryptocurrencies in the state’s public retirement and savings plans, paving the way for state employees to have access to digital assets through voluntary accounts.

The bill, House Bill 1042, would require Indiana public retirement boards, deferred compensation boards, and pension savings programs to offer self-directed brokerage accounts that include at least one virtual currency investment option by July 1, 2027.

The account will allow participants to allocate a portion of their retirement savings to Bitcoin, crypto assets, or exchange-traded funds linked to cryptocurrencies, subject to investment guidelines and oversight established by the plan administrator.

Under the law, participants will be able to select and manage their virtual currency holdings alongside traditional assets such as stocks, bonds, and ETFs. The Retirement Committee retains the authority to set distribution limits, set administrative fees, and ensure that account valuations reflect prevailing market prices.

The law defines cryptocurrencies as virtual currencies that are not issued by a central authority that acts as a medium of exchange and relies on encryption to regulate issuance, verify transfers, and prevent counterfeiting. Indiana lawmakers said the definition provides clarity for public investment programs that assess digital asset exposure.

Indiana and other US states love Bitcoin

With the passage of this bill, Indiana joins a growing list of states considering integrating Bitcoin and crypto products into their public investment portfolios. The proposal comes amid growing interest from U.S. states and local governments in incorporating digital assets into public portfolios, reflecting broader trends in cryptocurrency adoption and financial innovation.

South Dakota recently introduced House Bill 1155, which would allow the state to invest up to 10% of its public funds in Bitcoin.

Earlier this year, Rhode Island lawmakers introduced Senate Bill S2021, which would temporarily exempt small Bitcoin transactions up to $5,000 per month and $20,000 per year from state income and capital gains taxes.

The bill would treat Bitcoin as a “digital, decentralized currency” that would allow residents and Rhode Island-based businesses to self-certify eligibility while maintaining simple records.

This exemption will go into effect on January 1, 2027, and expire on January 1, 2028, as a pilot program to reduce tax frictions in the everyday use of Bitcoin.

New Hampshire is another state that actively supports Bitcoin.

In May 2025, New Hampshire became the first U.S. state to authorize the Treasury Department to invest in Bitcoin and other large digital assets by approving the allocation of up to 5% of certain public funds to cryptocurrencies under House Bill 302. Currently, BTC is subject to market capitalization rules.

This post, Indiana Governor Signs Bill Allowing Bitcoin in State Retirement Plans, originally appeared on Bitcoin Magazine and was written by Micah Zimmerman.