Indiana Enacts HB 1042 to Add Bitcoin Options in Public Retirement Plans by July 1, 2027

Indiana enacted House Bill 1042 on March 3, 2026, requiring state-managed retirement and savings programs to offer a self-directed brokerage option with at least one cryptocurrency investment choice by July 1, 2027. The mandate applies to the legislators' defined contribution plan, the Hoosier START education savings program, and accounts linked to public employees' and teachers' retirement systems, while plan boards may set guidelines, limits, valuation methods, and administrative fees for the crypto option. The law also bars state and local agencies, except the Department of Financial Institutions, from blocking lawful crypto payments, restricting self-custody via self-hosted or hardware wallets, or imposing discriminatory taxes, and prevents counties, municipalities, and townships from banning digital asset mining in industrial zones or targeting mining operations with special noise limits. The statute clarifies that developing or using software for noncustodial digital asset transfers is not treated as money transmission for licensing purposes.