Indiana advances crypto ETFs for public retirement plans

Indiana advances a bill to let public employees invest retirement savings in crypto ETFs via self-directed accounts, starting July 2026, with strong compliance safeguards.

Indiana lawmakers are advancing House Bill 1042, which would allow public employees to invest a portion of their retirement savings in cryptocurrency through self-directed brokerage accounts within state-managed retirement plans. If enacted, the Indiana Public Retirement System—managing about $55 billion in assets—would offer these options starting July 1, 2026. The bill restricts investments to regulated cryptocurrency exchange-traded funds (ETFs), specifically excluding cash-equivalent stablecoin funds to ensure transparency and regulatory compliance. Additionally, it prevents local governments from imposing extra restrictions on crypto offerings and protects digital mining operations in industrial zones. Only participants in defined contribution plans would be eligible for these new investment choices, and the state itself would not directly invest in cryptocurrency. Lawmakers note that further revisions may be needed before the bill’s final approval.