Indiana Lawmakers Send Crypto Bill HB1042 to Governor Braun

Indiana advances crypto bill HB1042, expanding legal protections and requiring retirement plans to offer regulated cryptocurrency investment options statewide soon.

Indiana lawmakers have sent House Bill 1042 to Governor Mike Braun for approval. The proposal increases the legal safeguards and adds crypto options in some retirement and savings plans. Consequently, the decision is indicative of Indiana’s greater involvement with digital assets regulatory and investment frameworks.

Lawmakers Push Forward Cryptocurrency Investment Access

According to Legiscan data, the bill passed through the legislature on Wednesday. Lawmakers passed the measure 59 votes in favor and 33 against. Moreover, the legislation is oriented towards cryptocurrency regulation, taxation standards, and investor protections, made statewide.

The bill requires state-administered plans to offer self-directed brokerage account options. Additionally, each eligible plan must have at least 1 cryptocurrency-linked investment choice. These offerings are widely expected to include spot crypto exchange-traded funds that are regulated.

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Furthermore, the proposal prevents public institutions from limiting lawful transactions in cryptocurrencies. It expressly safeguards the right to self-custody and home-based crypto mining/staking activities. Therefore, residents have added certainty in ownership and allowed participation in the blockchain.

Importantly, the bill prohibits discriminatory taxation or special taxation against the use of cryptocurrency. However, general tax obligations are still in force under existing Indiana financial regulations. For this reason, legislators want to avoid patchwork burdens on emerging digital asset activities.

The measure also restricts enforcement power of most of the state regulatory agencies. Only the Department of Financial Institutions is allowed to oversee certain matters of digital asset compliance. Therefore, lawmakers try to balance the need for oversight with innovation-friendly policy objectives.

Crypto Investment Momentum Expands Across US States

Indiana’s move is in line with a wider trend across America toward the adoption of digital assets. Currently, 21 states are investing in, or considering investments in, bitcoin and stablecoins. Moreover, many legislatures recently voted on laws that open some public funds to crypto exposure.

States such as Arizona, Tennessee, Oklahoma and Nebraska have pushed ahead with crypto-related legislation. These policies gained momentum after President Donald Trump promoted Bitcoin Strategic Reserve. As such, state governments are progressively looking at blockchain-related investing approaches and diversification of state treasury.

Supporters claim such measures modernize finance, and spread out long-term strategies for state investments. Meanwhile, critics are raising concerns about volatility risks, valuation swings and issues of fiduciary responsibility. Therefore, debates persist on reasonable safeguards in publicly managed retirement systems.

Separately, Indiana lawmakers passed another crypto-related measure banning virtual currency kiosks throughout the state. Violations would be enforced under deceptive consumer sales laws, officials confirmed. Consequently, the lawmakers had simultaneously heightened investor protections and tightened the controls against fraud risks.

Governor Mike Braun has 7 days now to sign or veto HB1042. Most provisions, if approved, are to take effect on July 1, 2026. Therefore, financial institutions and retirement administrators gear up in light of the possible adjustment in regulations.

The bill could alter retirement portfolio construction strategies, financial planners say. Additionally, brokerage flexibility also has the potential to appeal to younger investors looking for regulated exposure to crypto.

Investor advocates welcomed greater clarity on rights to lawful crypto payments and practices of self-custody. Meanwhile, regulatory agencies prepare guidance that ensures the same interpretation for financial and administrative bodies. Ultimately, Indiana’s legislation is the kind of closer integration between public finance systems and digital assets.