| What to Know: – HB 1042 cleared legislature, headed to governor; expands optional crypto access. – Access offered through self-directed brokerage accounts with at least one crypto ETF. – Public entities won’t hold tokens; no direct purchases in pension pools. |
Indiana’s HB 1042, the Bitcoin Rights Bill, cleared both chambers and is headed to the governor’s desk, as reported by Crypto.news. If signed, it would open crypto investment options for certain public retirement and savings programs in Indiana without mandating participation.
The measure channels exposure through regulated cryptocurrency exchange-traded funds (crypto ETFs) for eligible public funds, according to CoinCentral. That structure aims to align with existing brokerage and custody frameworks rather than direct token custody by public entities.
Access would be offered via self-directed brokerage accounts that must include at least one crypto-focused investment option, such as a crypto ETF, as reported by The Block. The bill does not authorize direct purchases of cryptocurrencies within state-managed pension pools.
Separately, consumer-protection proposals for cryptocurrency kiosks are moving under HB 1116 and are distinct from HB 1042, as reported by Indiana Capital Chronicle. That effort centers on scam mitigation and fee limits at crypto ATMs, not retirement-plan menus.
HB 1042 applies to defined contribution arrangements and specified savings programs, not to defined benefit pensions overseen by the Indiana Public Retirement System (INPRS). In practical terms, optional access would sit in participant-directed windows, while state-managed pension assets remain unchanged.
INPRS leadership has indicated a cautious, implementation-focused stance and clarified the bill’s scope to participant-directed plans. “Neutral … and more or less happy with it,” said Tom Perkins, investments counsel and director of investment stewardship at INPRS, noting the investment options would live in defined contribution plans.
For participants, any change would depend on plan sponsors enabling a self-directed brokerage window and selecting eligible crypto ETF offerings. For defined benefit plans, asset allocation policies and fiduciary controls remain unaffected by HB 1042.
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