Indiana lawmakers introduced House Bill 1042 (HB 1042) on December 2, 2025. The measure—titled “Regulation and investment of cryptocurrency”—would allow certain state retirement and savings plans to offer regulated cryptocurrency exchange-traded products (ETPs) as investment options, and would permit limited allocations where plan fiduciaries deem them suitable.
What the bill actually does
HB 1042 authorizes administrators of multiple public retirement and savings programs to make cryptocurrency ETPs available as regular investment options. Importantly, the bill does not force funds to buy Bitcoin; it provides a legal pathway for pension boards and plan managers to evaluate crypto ETPs under existing fiduciary standards and internal risk policies.
Who sponsored it and where it sits
The bill was introduced in the Indiana House and referred to the House Committee on Financial Institutions. The public bill text and official materials list Representative Pierce as the first author. The legislative record shows HB 1042’s status as “Introduced” and the first reading occurring on December 2, 2025.
Why it matters for public pensions
Public pension systems typically favor cautious, diversified strategies. Allowing regulated crypto ETPs gives pension managers a way to gain exposure to digital assets without direct custody of private keys—using institutional-grade custody and audited products instead. For proponents, that reduces operational friction; for critics, volatility and governance remain the central concerns.
Fiscal note and practical limits
The Legislative Services Agency published a fiscal note alongside the bill. The analysis describes the direct fiscal impact as indeterminate but likely modest, noting that any exposure would be governed by internal policies, suitability reviews and caps to limit systemic risk. In short: the law would permit consideration, not mandate broad allocations.
Context: part of a broader trend
Indiana’s proposal arrives amid a wave of state-level activity exploring crypto in public finance. Several other states have introduced or debated similar measures, and the rise of regulated spot Bitcoin ETPs has given public and private asset managers a clearer vehicle to provide crypto exposure within existing financial frameworks.
The bottom line
HB 1042 marks a legal shift: it moves the question from “can public funds consider Bitcoin?” to “how, and under what safeguards?” If enacted, the bill could serve as a model for other states or at least accelerate conversations about prudent, limited crypto allocations in public retirement portfolios.