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Indiana Bill Would Open Public Plans to Crypto ETFs and Preempt Local Bans

The proposal channels digital-asset exposure through regulated funds under statewide guardrails.

Overview

  • House Bill 1042 was introduced and received an early hearing in the Indiana House as lawmakers consider expanding investment options.
  • The measure would require the 529 education savings plan, Hoosier START, and major state retirement systems to offer at least one cryptocurrency ETF.
  • The bill limits exposure to indirect vehicles by authorizing crypto ETFs and disallowing direct token purchases, and it permits the state treasurer to use stablecoin ETFs.
  • It would create a Blockchain and Digital Assets Task Force to study applications and recommend pilot projects statewide.
  • The legislation bars local rules targeting crypto use, mining, or self-custody and protects private keys, as pension officials stay neutral and seek clear volatility disclaimers alongside rising state interest highlighted by Texas’ recent $5 million IBIT purchase.