Indiana Bill Mandates Crypto ETFs in State Retirement Plans

Indiana lawmakers have introduced legislation that would require state-managed retirement and savings programs to offer cryptocurrency exchange-traded funds as investment options, while also limiting local governments' ability to restrict digital asset activities such as mining and payments.

House Bill 1042, sponsored by State Rep. Kyle Pierce, a Republican from Anderson, was presented during a meeting of the House Financial Institutions Committee earlier this week. The proposal comes as the 2026 Indiana legislative session got underway on Monday, following discussions on redistricting. If enacted, the bill would mark the first time a state mandates cryptocurrency exposure in publicly managed retirement programs, providing public employees and savers with new ways to diversify their portfolios amid the growing role of digital assets in the economy.

The bill's investment provisions target several state-run plans, including those for public servants, teachers, law enforcement officers, judges and general public employees. Administrators of these programs would be required to include at least one cryptocurrency ETF option, allowing participants indirect exposure to assets like...