Indiana lawmakers pass crypto rights bill

Indiana lawmakers have approved a cryptocurrency rights measure that would restrict how state authorities tax and regulate digital assets.

The bill would also open new investment pathways for public retirement savers.

House Bill 1042, titled the Regulation and Investment of Cryptocurrency, passed the legislature on Wednesday with 59 votes in favour and 33 against, according to Legiscan.

The bill now heads to Governor Mike Braun for his signature.

If enacted, most provisions would take effect on July 1, while rules tied to retirement plan brokerage options would be implemented later.

The legislation centres on expanding legal protections for Bitcoin and other digital assets.

It seeks to prohibit discriminatory taxes on crypto payments and self-custodied holdings, and limit the ability of public agencies to block lawful digital asset activity.

Tax and payment protections

A key feature of House Bill 1042 is its restriction on state and local regulatory action involving digital assets.

Under the proposal, public agencies, excluding the Department of Financial Institutions, would be barred from adopting or enforcing rules that prohibit individuals from accepting cryptocurrency as payment.

These protections apply to lawful goods and services.

The bill also prevents agencies from introducing regulations that interfere with a person’s ability to take custody of their own crypto holdings.

In addition, it blocks the imposition of discriminatory taxes and fees targeting cryptocurrency payments and self custodied assets.

The measure extends to crypto mining. It prohibits the enforcement of rules that would ban or restrict mining operations conducted by businesses or individuals, subject to carve outs specified in the legislation.

Retirement plans add crypto

Beyond tax and regulatory limits, the bill would reshape how certain public retirement and savings plans operate.

If signed, it would require specified state retirement and savings plans to offer a self directed brokerage option that includes at least one cryptocurrency investment choice by July 1, 2027.

This requirement would apply to the legislators’ defined contribution plan, the Hoosier START plan, specified public employees’ retirement funds, and specified teachers’ retirement fund plans.

For the first time, eligible participants in these plans would be able to gain exposure to Bitcoin and other digital assets through a structured brokerage channel.

While other US states have adopted crypto investor protection measures, Indiana’s bill is distinct in directly mandating access to digital assets within public retirement frameworks.

Part of a broader state shift

Indiana joins a growing list of states moving to formalise crypto rights.

Oklahoma signed a crypto investor protection bill into law in November 2024.

Kentucky followed with similar legislation in March 2025.

In Pennsylvania, House Bill 2481, focused on crypto investor protection rights, passed in October 2024 with bipartisan support but has not yet been signed into law.

House Bill 1042 is now awaiting Governor Braun’s decision.

If signed, Indiana would combine tax restrictions, regulatory limits, mining protections, and retirement plan access under a single digital asset framework.

If approved, the state would position itself among the more active US jurisdictions shaping cryptocurrency policy at the legislative level.