Indiana Crypto Rights Bill Clears Both Chambers, Awaits Signing

Indiana has taken another step toward crypto adoption at the state level. Lawmakers have passed House Bill 1042. The bill now goes to Governor Mike Braun for final approval. The crypto rights bill passed the House after receiving Senate approval. If the governor signs it. The key provisions will begin rolling out in 2026 and beyond.

Indiana's HB 1042 bill has passed both legislative chambers and is now awaiting the governor's signature.

The bill seeks to open up crypto investment options for public retirement plans and protect digital asset activities on an individual level. pic.twitter.com/JuHQJuJJWW

— TheCryptoBasic (@thecryptobasic) February 26, 2026

At its core, the legislation aims to integrate crypto into certain public retirement options. While also protecting individual rights to use and hold digital assets. Supporters say the move reflects growing mainstream acceptance of crypto across the U.S.

Key Provisions for Retirement Plans

One of the biggest changes in HB 1042 focuses on public retirement and savings programs. The bill requires certain state managed plans to offer self-directed brokerage windows. That includes at least one cryptocurrency investment option. These options will likely come through regulated products. Such as crypto ETFs rather than direct token purchases.

The requirement applies to multiple programs. Including public employee retirement funds, teachers’ retirement accounts, legislative defined contribution plans and Hoosier START college savings accounts. As a result, many teachers, state workers and public officials could soon gain crypto exposure similar to private sector investors. While the state itself will not directly buy crypto. The policy opens the door for individuals within these plans to allocate funds if they choose.

Protections for Individual Crypto Users

Beyond retirement access, the crypto rights bill also includes strong protections for everyday crypto users. HB 1042 formally defines crypto as a virtual currency. That is not issued or controlled by a central authority. That uses encryption for secure transactions. Importantly, the measure blocks state agencies and local governments from banning or restricting several core crypto activities. 

These include using digital assets for payments. It also holds assets in self-custody wallets, running blockchain nodes, mining from home and staking. The crypto rights bill also prohibits discriminatory taxes or special fees that target crypto users. Supporters often describe these provisions as a state level “Bitcoin rights” framework. They argue it gives residents clearer legal certainty in a fast-changing industry.

Legislative Path and Support

Representative Kyle Pierce introduced the bill in late 2025. It moved through committees with some revisions, including the removal of earlier language. That would have allowed direct pension fund crypto purchases. Lawmakers instead chose the more cautious self directed option. The Senate approved the measure. Before the House gave final concurrence with a 59-33 vote. Advocacy groups and local crypto communities strongly supported the effort. After several years of education and lobbying.

Broader Implications for Crypto Adoption

If signed into law, Indiana will join a small but growing group of crypto friendly states like Wyoming. The retirement provision could slowly increase institutional exposure to digital assets through regulated channels. Through the individual rights language, may serve as a model for other states. Those who are considering similar protections.

But some policymakers remain cautious. Critics often point to crypto volatility and potential risks for retirement investors. Even so the crypto rights bill shows how U.S. states continue to experiment. With blending digital assets into traditional finance. For now, all eyes are on the governor’s desk. The final signature will determine whether Indiana’s crypto framework becomes law later this year.