Indiana Lawmakers Push Bill Allowing Public Investments in Bitcoin

Indiana lawmakers have introduced a proposal that would let public funds across the state invest in Bitcoin. 

House Bill 1042 arrived on Dec. 2, 2025, with Representative Kyle Pierce leading the effort and Reps. Jake Teshka, Christopher Judy, and Heath VanNatter joining as co-sponsors. The bill now sits with the House Committee on Financial Institutions.

Provisions of the Bill

Notably, the measure aims to update how Indiana’s public savings and retirement programs handle modern investments. It instructs the managers of major defined-contribution plans, employee retirement systems, and the state’s 529 education plan to include crypto ETFs as part of their standard investment lineup. 

Moreover, it also gives judges’ and prosecutors’ pension systems, law-enforcement retirement programs, and several other benefit funds the option to direct assets into crypto ETFs if their administrators choose to do so.

HB 1042 further expands the state treasurer’s authority by allowing certain trust and benefit funds to invest in stablecoin ETFs. 

Besides investments, the bill seeks to create a single statewide approach to digital-asset use. It blocks local governments from introducing rules that limit residents’ ability to accept or hold digital assets. It also rejects local taxes, fees, zoning rules, and noise restrictions that unfairly target crypto mining or treat it differently from similar industries. 

Interestingly, the bill also clarifies that people who use self-custody or non-custodial wallet software do not act as money transmitters under state law. In court matters, judges would only gain access to someone’s private key when no other evidence can unlock the digital asset.

Growing Interest in Bitcoin Among US States

The recent proposal makes Indiana the latest state in the U.S. to support Bitcoin-focused investing, following the arrival of the crypto-friendly Donald Trump administration. For instance, last year, Arizona asked two of its major retirement systems to look into Bitcoin ETFs as a way to diversify their investments.

Pennsylvania followed in November 2024, when lawmakers proposed allowing the state treasurer and public pension funds to put up to 10% of certain state assets into Bitcoin. 

Meanwhile, Florida introduced a similar plan in October 2025, giving its CFO and the State Board of Administration authority to allocate a comparable share of public funds, including the large Florida Retirement System Trust Fund, into Bitcoin.

Interestingly, New Hampshire already took a more decisive step in May 2025. Specifically, Governor Kelly Ayotte signed a bill that lets the state treasury move up to 5% of eligible reserves into digital assets with market caps above $500 billion, a category that currently includes only Bitcoin. 

Texas also advanced its own strategy by creating the Texas Strategic Bitcoin Reserve and authorizing its comptroller to direct $10 million in public funds toward Bitcoin, including ETF purchases. As a result, the state invested $5 million into the BlackRock Bitcoin ETF last month.