Indiana lawmakers have passed legislation allowing public retirement and savings plans to invest in bitcoin, crypto-linked exchange-traded funds (ETFs), and Governor Mike Braun is expected to sign the bill, HB 1042, into law in the next 10 days.
The move puts Indiana among a growing number of states considering digital assets in public investment portfolios.
Under the new law, Indiana public retirement boards, deferred compensation committees, and annuity savings plans are required, by July 1, 2027, to offer self-directed trading accounts that include at least one cryptocurrency investment option.
These accounts will give program participants the ability to choose cryptocurrency investments in accordance with the board’s established investment guidelines, track account balances, and pay management fees related to digital asset holdings.
The law defines cryptocurrency as a virtual currency that can be issued by a central authority, serves as a medium of exchange, and relies on encryption technology to control issuance, ensure transfers, and prevent counterfeiting.
Indiana joins other states that have mandated public funds to gain exposure to digital assets.
This trend has accelerated following President Donald Trump’s directive to create the US Bitcoin Strategic Reserve, encouraging states and public organizations to consider bitcoin and digital assets as part of their long-term investment strategies.
Lawmakers say the new law will give government workers and retirees more ways to invest, including cryptocurrencies, while retaining control over their choices.
Self-directed accounts allow participants to manage crypto alongside stocks, bonds, and ETFs, with boards setting limits and guidelines to minimize risk.
The law also specifies that retirement boards and deferred compensation committees are responsible for overseeing crypto options, setting payouts, and ensuring that account values ​​reflect market values.
It balances crypto offerings across state pensions, deferred compensation plans, and retirement accounts, giving Indiana participants consistent access to digital assets.
Bitcoin and crypto ATM bans amid fraud concerns
In a separate measure, the Indiana legislature voted to ban the operation of virtual currency stores, known as bitcoin or crypto ATMs, throughout the state. The ban is in response to law enforcement reports of increasing fraud tied to crypto ATMs.
In Evansville, residents lost nearly $400,000 to scams linked to these devices in 2025. Violations of the ban would be subject to the state attorney general’s enforcement powers under deceptive consumer sales laws.
The ban is in line with wider concerns about crypto ATM fraud across the country.
The FBI reported about 11,000 complaints related to crypto ATM scams in 2024, marking a 99% increase from last year, with an estimated loss of $240 million in the first half of 2025.
