Indiana allows certain pension and savings plans to include crypto investments and has introduced stronger legal protections for the crypto industry under a newly signed bill.
Governor Mike Brown signed House Bill 1042 into law on Tuesday after passing the bill last Thursday. The legislation requires Indiana state retirement and savings plans to offer self-directed brokerage accounts with at least one crypto investment option by July 2027.
According to the bill’s description, the requirement applies to lawmakers’ defined contribution plans, the Hoosier START plan, certain public employee pension funds and teacher pension fund plans.
More institutions are accepting digital assets, and Bitbo estimates that more than 3.7 million Bitcoin (BTC) (worth $258 billion) are held by publicly and privately traded companies, exchange-traded funds, and governments.
Protection for crypto payments and mining
The bill also includes provisions that protect the rights of crypto users. Under the legislation, government agencies, with the exception of the Department of Financial Institutions, are prohibited from adopting or enforcing regulations that prohibit cryptographic payments, cryptocurrencies or mining.
The bill also clarifies that software programs and protocols that allow non-custodial transfers do not require a money transfer license.
Local governments, such as counties, municipalities, or towns, also cannot single out crypto mining enterprises or home miners with special restrictions that do not apply to similar businesses or activities in a regional area.
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Noise from crypto mining operations has created controversy in other states. Residents of Hood County, Texas, last year tried to form a new municipality to regulate noise from a local mining facility.
Access to pension funds is profitable for crypto
At the federal level, President Donald Trump’s August executive order “Democratizing Access to Alternative Assets for 401(k) Investors” directed the SEC to make alternative assets like crypto more accessible to participants in retirement plans.
Some analysts, such as Tom Dunleavy, head of Varys Capital and former senior analyst at Messari, predicted that even a 1% allocation to crypto in 401(k)s could bring in $120 billion in new circulation.
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