Indiana Gov. Mike Braun signed legislation allowing bitcoin and cryptocurrency investments in the state’s retirement and savings plans, giving state employees exposure to digital assets through self-directed accounts.
The measure, House Bill 1042, requires Indiana public retirement boards, deferred compensation committees, and savings plans to offer self-directed brokerage accounts that include at least one cryptocurrency investment option by July 1, 2027.
The accounts will allow participants to allocate a portion of their retirement savings to bitcoin, crypto assets, or crypto-linked exchange-traded funds, subject to investment guidelines and oversight established by program administrators.
Under the law, participants will be able to choose and manage their own cryptocurrency holdings alongside traditional assets such as stocks, bonds, and ETFs. Retirement boards will retain the authority to set distribution limits, establish administrative funds, and ensure that account balances reflect prevailing market values.
The law defines cryptocurrency as a virtual currency that can be issued by a central authority that acts as a medium of exchange and relies on encryption to manage issuance, ensure transfers, and prevent counterfeiting. Indiana lawmakers said the definition provides clarity to public investment programs that assess exposure to digital assets.
Indiana and other US states love bitcoin
With the passage of this bill, Indiana joins a growing list of states that are exploring the integration of bitcoin and crypto products into public investment portfolios. This proposal comes amid growing interest from US states and municipalities in integrating digital assets into public portfolios, reflecting broader trends in cryptocurrency adoption and financial innovation.
South Dakota recently introduced House Bill 1155, which would allow the state to invest up to 10% of public funds in Bitcoin.
Earlier this year, Rhode Island lawmakers introduced Senate Bill S2021 to temporarily exempt Bitcoin transactions from federal income and capital gains taxes, up to $5,000 monthly and $20,000 annually.
The bill treats Bitcoin as a “digital, decentralized currency” and allows Rhode Island-based residents and businesses to self-verify validity while keeping simple records.
The exemption will take effect on January 1, 2027, and expire on January 1, 2028, as a pilot program to reduce the tax friction in everyday Bitcoin use.
New Hampshire is another state actively championing Bitcoin.
In May 2025, New Hampshire became the first US state to allow its treasury to invest in Bitcoin and other major digital assets, authorizing up to 5% of certain public funds to be allocated to crypto under House Bill 302. BTC currently qualifies under market-cap law.
