Indiana lawmakers have passed legislation allowing public retirement and savings plans to invest in bitcoin, crypto and crypto-linked exchange-traded funds (ETFs), with Governor Mike Braun expected to sign the bill, HB 1042, into law within the next 10 days.
The move positions Indiana among a growing number of states considering digital assets in public investment portfolios.
Under the new law, Indiana’s public retirement boards, deferred compensation committees, and annuity savings programs are required, by July 1, 2027, to offer self-directed brokerage accounts that include at least one cryptocurrency investment option.
These accounts will give plan participants the ability to select cryptocurrency investments in accordance with the boards’ established investment guidelines, track account valuations, and pay administrative fees associated with digital asset holdings.
The legislation defines cryptocurrency as a virtual currency that is not issued by a central authority, functions as a medium of exchange, and relies on encryption technology to regulate issuance, verify transfers, and prevent counterfeiting.
Indiana joins other states that have authorized public funds to gain exposure to digital assets.
This trend has accelerated following President Donald Trump’s directive to create a U.S. Bitcoin Strategic Reserve, encouraging states and public entities to consider bitcoin and digital assets as part of their long-term investment strategies.
Lawmakers say the new law will give public employees and retirees more ways to invest, including in cryptocurrencies, while keeping control over their choices.
Self-directed accounts let participants manage crypto alongside stocks, bonds, and ETFs, with boards setting limits and guidelines to reduce risk.
The legislation also clarifies that retirement boards and deferred compensation committees are responsible for overseeing crypto options, setting fees, and ensuring account values reflect market prices.
It standardizes crypto offerings across state pensions, deferred compensation programs, and annuity accounts, giving Indiana participants consistent access to digital assets.
Bitcoin and crypto ATM ban amid fraud concerns
In a separate measure, the Indiana legislature voted to ban the operation of virtual currency kiosks, commonly known as bitcoin or crypto ATMs, across the state. The ban responds to law enforcement reports of rising fraud tied to crypto ATMs.
In Evansville, residents lost approximately $400,000 in scams connected to these machines in 2025. Violations of the ban would fall under the enforcement authority of the state attorney general under deceptive consumer sales laws.
The prohibition aligns with broader concerns about crypto ATM fraud nationwide.
The FBI reported nearly 11,000 complaints related to crypto ATM scams in 2024, marking a 99% increase from the previous year, with losses totaling an estimated $240 million in the first half of 2025.
