Indiana Bitcoin Rights Bill Passed, Awaiting Governor's Signature, Effective July

The Indiana State Legislature in the United States passed House Bill 1042 (HB 1042), the “Cryptocurrency Regulation and Investment” bill, on Wednesday, which is currently awaiting final signature from Governor Mike Braun. If approved, the Bitcoin Rights Bill will officially take effect on July 1. The bill mandates that designated state-managed retirement and savings plans offer cryptocurrency investment options, protect individuals’ legal rights to use cryptocurrencies for payments and asset holdings, and prohibit discriminatory taxes on crypto activities.

The three core protections of HB 1042

Proposed by Representative Kyle Pierce, HB 1042 constructs a three-tiered legal protection framework for digital assets, which industry experts regard as comprehensive Bitcoin rights legislation.

Retirement and savings plans are open to cryptocurrencies: The bill requires the following state-managed programs to provide participants with self-managed brokerage accounts that include at least one cryptocurrency investment option: the Legislature Defined Contribution Plan, Hoosier START College Savings Plan, Public Employees Retirement Fund (PERF), and designated plans under the Teachers’ Retirement Fund (TRF).

Protection of personal digital asset holdings and payments: Aside from oversight by financial regulatory agencies, no public authority may restrict individuals from paying for legitimate goods and services with cryptocurrencies, nor prohibit individuals from holding digital assets in self-custody wallets or hardware wallets.

Principle of tax equality: The bill prohibits state governments from imposing special taxes on cryptocurrency activities that do not apply to other financial transactions, ensuring that users of digital assets are not burdened with additional taxes due to the nature of their assets.

Summary of key provisions of the HB 1042 Bitcoin Rights Bill

Affected retirement plans: Legislative pensions, Hoosier START savings plans, PERF, and TRF designated plans

Investment requirements: Each plan must offer at least one cryptocurrency investment option

Protection of personal payments: Individuals shall not be restricted from using cryptocurrencies to pay for legitimate goods and services

Protection of holdings: Individuals must not be prohibited from using self-custody or hardware wallets to hold digital assets

Tax protections: Prohibit the imposition of differential taxes on cryptocurrency activities

Effective date: If signed by Governor Mike Braun, effective July 1, 2026

National Trend: The Significance of Indiana’s Bitcoin Rights Legislation

The passage of HB 1042 aligns with the broader trend of accelerating digital asset legislation across U.S. states and is consistent with federal policy directions. In August last year, President Trump signed an executive order permitting 401(k) retirement plans to include cryptocurrency investments, providing federal policy support for similar state-level legislation.

Indiana’s Bitcoin Rights Bill is notable for its threefold structure: it not only expands cryptocurrency coverage within institutional retirement plans but also establishes clear legal protections for self-custody wallet users through explicit personal holding rights, and enforces the principle of tax equality to prevent discrimination against crypto asset users. If signed into law by the governor, this legislative model could serve as a key reference for other states seeking to advance Bitcoin rights legislation.

Frequently Asked Questions

Q: What is the core of Indiana’s HB 1042 Bitcoin Rights Bill?
A: HB 1042 requires designated state-managed retirement and savings plans—including legislative pensions, Hoosier START savings plans, PERF, and TRF—to offer at least one cryptocurrency investment option. It also prohibits public entities from restricting individuals’ use of cryptocurrencies for payments or holdings, and bans discriminatory taxes on crypto activities.

Q: When will the bill take effect, and what is its current status?
A: HB 1042 has been approved by both the Indiana House and Senate and is now awaiting the governor’s signature. If signed, it will become effective on July 1, 2026.

Q: How does Indiana’s legislation protect self-custody crypto users?
A: The bill explicitly prohibits any public authority other than financial regulatory agencies from restricting individuals from holding cryptocurrencies in self-custody wallets or hardware wallets, providing a clear legal framework for individuals holding Bitcoin and other digital assets.