Indiana Crypto Bill of Rights Passes Both Houses, Awaits Governor’s Signature

• HB 1042 has cleared both the House and Senate with final approval.
• If signed by the governor, the law will take effect on July 1, 2026, statewide.
• Public agencies, except the Department of Financial Institutions, cannot restrict crypto payments.

Indiana’s House and Senate have passed House Bill 1042, titled the “Cryptocurrency Regulation and Investment Act.” The bill now awaits action from Governor Mike Braun.

The House concurred with Senate amendments on Wednesday, giving the bill bicameral approval. If signed, the law will take effect on July 1, 2026.

The bill was introduced by Rep. Kyle Pierce and centers on two areas, i.e., retirement plan access and individual crypto rights.

Retirement Plans Must Offer Crypto Option

HB 1042 requires certain state-administered retirement and savings plans to provide a self-directed brokerage account that includes at least one cryptocurrency investment option.

The affected plans include the Legislators’ Defined Contribution Retirement Plan, the Hoosier START College Savings Plan, and specified plans under the Public Employees’ Retirement Fund and the Teachers’ Retirement Fund.

It is important to note that the state will not directly allocate pension funds into crypto. Instead, participants can choose a brokerage window and select crypto exposure themselves.

A prior provision that would have allowed the state to invest pension assets into crypto exchange-traded funds was removed. Lawmakers said the product needed more review and cited weak performance.

The defined contribution side remains intact, but direct state-managed exposure was stripped out. While individual choice is allowed, automatic state allocation is not.

Agencies Barred From Restricting Crypto Use

Beyond retirement access, the bill limits regulatory reach. Public agencies, except the Department of Financial Institutions, may not restrict individuals from accepting cryptocurrency as payment for lawful goods and services.

Agencies also cannot block residents from holding digital assets in self-custodied or hardware wallets. The bill further prohibits special taxes on crypto activities that differ from those applied to other financial transactions.

The framework creates a state-level protection layer for holders and users. It prevents local agencies from creating separate rulebooks for digital assets.

Parallel Push to Ban Crypto ATMs

While HB 1042 expands access and protections, lawmakers have advanced legislation that would ban cryptocurrency ATMs outright via House Bill 1116. An earlier draft required licensing, identity checks, and transaction limits, but was replaced with a full ban amendment.

Operating a kiosk would become an illegal, deceptive act. The state attorney general could sue operators and property owners hosting the machines. Courts could order forfeiture of the kiosks and collected funds, along with recovery of investigation costs.

Related: Missouri Advances Bitcoin Strategic Reserve Bill HB 2080