Indiana OKs Bitcoin Investments in Public Retirement Plans

Indiana lawmakers have passed legislation enabling public retirement plans to invest in Bitcoin, cryptocurrency, and crypto-linked exchange-traded funds. The bill, designated HB 1042, now awaits the signature of Governor Mike Braun, who is expected to enact it within the next 10 days. The move positions Indiana among a growing wave of states embracing digital assets within public investment portfolios.

What Does Indiana's Bitcoin Retirement Bill Require?

Indiana's HB 1042 mandates that public retirement boards, deferred compensation committees, and annuity savings programs offer self-directed brokerage accounts featuring at least one cryptocurrency investment option by July 1, 2027. These accounts let plan participants allocate funds toward crypto holdings in accordance with board-established guidelines, track account valuations, and pay administrative fees tied to digital asset positions.

The law defines cryptocurrency as a virtual currency not issued by a central authority that serves as a medium of exchange and depends on encryption technology to govern issuance, verify transfers, and prevent counterfeiting.

State Pension Crypto Access Joins National Trend

Indiana joins a growing roster of states authorizing public funds to gain exposure to digital assets. This trend has accelerated following President Donald Trump's directive to establish a U.S. Bitcoin Strategic Reserve, encouraging states and public entities to consider Bitcoin as part of long-term investment strategies.

Lawmakers noted the law gives public employees and retirees more investment options, including cryptocurrencies, while preserving individual control. Self-directed accounts let participants manage crypto alongside stocks, bonds, and ETFs, with boards setting limits to mitigate risk. The legislation also charges retirement boards with supervising crypto options, establishing fees, and ensuring valuations reflect market prices.

Indiana Simultaneously Moves to Ban Crypto ATMs

In a separate measure, the Indiana legislature voted to ban the operation of virtual currency kiosks, commonly known as Bitcoin or crypto ATMs, statewide. The prohibition responds to law enforcement reports of rising fraud tied to these machines. In Evansville alone, residents lost approximately $400,000 to crypto ATM scams during 2025, according to local authorities.

Nationally, the FBI reported nearly 11,000 complaints related to crypto ATM scams in 2024, a 99% increase from the prior year, with losses totaling an estimated $240 million in the first half of 2025, according to federal data. Violations of Indiana's ban fall under the state attorney general's enforcement authority through deceptive consumer sales laws.

What This Means Going Forward

Indiana's dual approach reflects the complex regulatory posture states are taking toward cryptocurrency: welcoming institutional Bitcoin exposure through retirement funds while cracking down on consumer-facing fraud. Once Governor Braun signs HB 1042, Indiana will hold one of the most explicit mandates requiring public pension systems to offer digital asset options. The July 1, 2027 deadline gives boards over a year to integrate crypto across state pensions, deferred compensation programs, and annuity accounts.