Indiana Makes History as First U.S. State to Legalize Crypto in State Retirement Plans

Indiana has become the first state in the United States to authorize the inclusion of Bitcoin and other cryptocurrencies into state-managed retirement and savings plans. 

Governor Mike Braun signed the landmark legislation, known as House Bill 1042, into law.

The enrolled House Bill, which is titled “Regulation and investment of cryptocurrency,” was authored by Representative Kyle Pierce. 

Mandatory crypto options 

Under the new law, state-managed retirement and savings plans are required to provide at least one cryptocurrency investment option. 

This access will be provided through a self-directed brokerage account offered as a regular investment program.

According to the bill’s digest, the mandate applies to several specific state programs.

The self-directed brokerage accounts established under this bill will offer more than just basic purchasing power. 

Users will be permitted to operate nodes and engage in peer-to-peer transactions.

The plans can also include cryptocurrency exchange-traded funds (ETFs). Stablecoin-related funds are currently excluded from the approved investment vehicles due to insufficient regulatory clarity. 

The bill prohibits public agencies, counties, municipalities, and townships from adopting any rules that prohibit an individual’s ability to use cryptocurrency.

Pension providers across the state will not have to implement the changes overnight. The law provides a grace period, giving providers until July 1, 2027, to fully integrate the necessary digital asset provisions. 

Banning crypto ATMs

Indiana is embracing institutional crypto, but it is taking a hardline stance against retail crypto kiosks. 

In late February 2026, the Indiana legislature passed House Bill 1116, which bans the operation of virtual currency kiosks across the state.