Indiana’s Governor Approves Legislation Permitting Bitcoin Investments in State Retirement Funds
Governor Mike Braun of Indiana has officially enacted a new law that permits the inclusion of bitcoin and other cryptocurrencies within the state’s public retirement and savings plans. This groundbreaking move enables state employees to diversify their retirement portfolios by investing in digital currencies through self-managed accounts.
The legislation, known as House Bill 1042, mandates that Indiana’s public pension boards, deferred compensation committees, and annuity savings programs must provide self-directed brokerage accounts featuring at least one cryptocurrency investment option by July 1, 2027.
These accounts will empower participants to allocate a portion of their retirement assets into bitcoin, various crypto tokens, or exchange-traded funds linked to cryptocurrencies. All investments will be subject to specific guidelines and oversight set forth by plan administrators.
According to the new law, account holders can independently choose and manage their cryptocurrency holdings alongside conventional investment vehicles such as stocks, bonds, and ETFs. Meanwhile, retirement boards retain control over setting allocation limits, administering fees, and ensuring valuations reflect current market conditions.
The statute clearly defines cryptocurrency as a virtual currency not issued by any central authority but functioning as a medium of exchange secured through cryptographic methods for issuance regulation and transaction verification. Legislators emphasized this definition provides essential clarity for managing digital asset exposure within public investment frameworks.
Growing Embrace of Bitcoin Among U.S. States
With this bill now enacted in Indiana, the state joins an increasing number of U.S. jurisdictions exploring ways to integrate bitcoin and other crypto products into government-managed financial portfolios—a trend driven by rising interest in digital assets across municipalities nationwide.
For example, South Dakota recently proposed House Bill 1155, which would authorize investing up to ten percent of public funds into Bitcoin holdings.
Rhode Island brought forward Senate Bill S2021 earlier this year, aiming to temporarily exempt small-scale Bitcoin transactions from income tax and capital gains tax with monthly limits capped at $5,000, while annual exemptions max out at $20,000.
This measure classifies Bitcoin as a “digital decentralized currency” allowing residents along with local businesses to self-certify eligibility while maintaining straightforward records.
The exemption is scheduled from January 1st,202%7;; , through January 1st; 2088;; , serving initially as a pilot program aimed at easing taxation barriers on everyday use cases involving Bitcoin transactions.
An additional notable example is New Hampshire. In May (2025), it became America’s first state treasury authorized under House Bill 302) (to invest up to five percent )of designated public funds directly into BTC plus other significant large-cap cryptocurrencies meeting market capitalization criteria established under said legislation.)
This article titled “Indiana Governor Approves Legislation Permitting Bitcoin Investments in State Retirement Funds”, originally published on “Bitcoin Magazine“, was authored by Micah Zimmerman.”