Indiana Governor Mike Braun has signed legislation allowing bitcoin and cryptocurrency investments in the state’s public pension and savings plans, opening the door for state employees to gain exposure to digital assets through self-directed accounts.
The measure, House Bill 1042, requires Indiana public pension boards, deferred compensation committees and annuity savings programs to offer self-directed brokerage accounts that include at least one cryptocurrency investment option by July 1, 2027.
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 plan administrators.
Under the law, participants will be able to select and manage their own cryptocurrency holdings alongside traditional assets such as stocks, bonds and ETFs. Pension boards will retain the power to set award limits, set administrative fees and ensure account valuations reflect prevailing market rates.
The legislation defines cryptocurrency as a virtual currency not issued by a central authority that acts as a medium of exchange and relies on encryption to regulate issuance, verify transfers and prevent counterfeiting. Indiana lawmakers said the definition provides clarity for public investment programs that evaluate exposure to digital assets.
Indiana and other US states love bitcoin
With the bill’s passage, Indiana joins a growing list of states exploring the integration of bitcoin and crypto products into public investment portfolios. The proposal comes amid growing interest from US states and municipalities to incorporate 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 small Bitcoin transactions from state income and capital gains taxes with a monthly cap of $5,000 and $20,000 annually.
The bill treats Bitcoin as a “digital, decentralized currency” and allows residents and Rhode Island-based businesses to self-certify eligibility 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 tax friction in everyday use of Bitcoin.
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 the market value rule.