Indiana OKs Crypto Rights Bill Banning Discriminatory Taxes

What to Know

HB 1042 cleared the Indiana legislature on Wednesday with 59 votes in favor and 33 against, now heading to Governor Mike Braun
The crypto rights bill prohibits discriminatory taxes on digital assets and bars agencies from restricting lawful crypto payments, self-custody, or mining
Indiana's legislation uniquely mandates self-directed brokerage accounts in state retirement plans with at least one cryptocurrency option by July 1, 2027
Multiple U.S. states including Oklahoma and Kentucky have enacted similar protections, but Indiana's retirement mandate sets it apart

Indiana's crypto rights bill HB 1042 passed both legislative chambers on Wednesday and now awaits Governor Mike Braun's signature. The measure cleared the statehouse with 59 votes in favor and 33 opposed, according to data from Legiscan, and would safeguard Bitcoin and cryptocurrency investor rights while opening the door to digital asset holdings in state retirement accounts.

What Does Indiana's Crypto Rights Bill Do?

Indiana's HB 1042 is a sweeping crypto rights bill that shields digital asset investors from discriminatory state and local regulations. The legislation bans crypto-specific taxes, guarantees the right to self-custody, and protects lawful mining operations from prohibition. If Governor Braun signs the measure, most provisions will take effect on July 1, while the retirement-plan brokerage requirement carries a later deadline.

Under the bill, state and local public agencies cannot adopt or enforce rules prohibiting lawful cryptocurrency payments, self-custody of digital assets, or crypto mining activities. Public agencies, excluding the Department of Financial Institutions, will be barred from imposing taxes and fees on crypto payments or self-custodied holdings, according to the bill text. The measure also prevents agencies from blocking individuals who accept digital asset payment for legal goods and services.

Crypto Retirement Plans Set Indiana Apart

What distinguishes Indiana's crypto rights bill from similar legislation in other states is its retirement-plan mandate. HB 1042 requires certain state retirement and savings plans to offer self-directed brokerage accounts featuring at least one cryptocurrency investment option by July 1, 2027. This provision would allow Indiana citizens to hold Bitcoin and digital assets within their retirement portfolios for the first time.

The retirement mandate extends to several major state programs, including the legislators' defined contribution plan, the Hoosier START plan, specified public employees' retirement funds, and specified teachers' retirement fund plans. No other state crypto rights bill currently includes a self-directed brokerage requirement of this scope, according to available legislative records.

How Does Indiana Compare to Other State Crypto Bills?

Several U.S. states have already enacted crypto investor protection legislation, but Indiana's version goes further than most. Oklahoma signed a comparable crypto rights bill in November 2024, and Kentucky followed in March 2025, each establishing baseline protections for digital asset holders. Pennsylvania's House Bill 2481 for crypto investor protection passed with strong bipartisan support in October 2024 but has yet to receive the governor's signature.

Indiana's HB 1042 builds on those earlier frameworks while adding the unprecedented retirement-plan component. The growing wave of state-level crypto legislation signals a widening legislative trend, as lawmakers across the country move to define clear rules for digital asset ownership and taxation.

What This Means Going Forward

If Governor Braun signs HB 1042 into law, Indiana will join a growing roster of states with explicit legal protections for cryptocurrency holders. The bill's prohibition on discriminatory crypto taxes and its retirement-plan provisions could serve as a model for other state legislatures weighing similar measures in 2026 and beyond.