Crypto Law Profile
Indiana HEA 1042 requires covered state retirement and savings programs to offer, by July 1, 2027, a self-directed brokerage account with at least one crypto investment option; it also limits some state/local restrictions on digital asset...
Indiana House Enrolled Act No. 1042 is a 2026 state law addressing cryptocurrency in selected public retirement and savings programs, alongside broader limits on state and local digital-asset restrictions. This profile focuses on the public retirement plan crypto investment option. The bill was signed as Public Law 49 on March 3, 2026, is scheduled to take effect on July 1, 2026, and gives covered programs until July 1, 2027 to offer a self-directed brokerage account with at least one cryptocurrency investment option.
The act adds parallel provisions across several Indiana retirement and savings statutes. Covered programs include the legislators’ defined contribution fund, the Hoosier START framework, specified Public Employees’ Retirement Fund accounts and plan components, and specified Teachers’ Retirement Fund accounts and plan components. The operative structure is not a direct allocation mandate by the state treasury; it is an investment-menu requirement inside a self-directed brokerage account made available as a regular investment program.
For each covered program, the relevant board or committee may set investment guidelines and limits, rules for participant selection and changes, valuation procedures, expense allocation rules, and administrative fees. Those implementation choices will determine how the option is presented to participants before the July 2027 deadline. The act’s definition of “cryptocurrency” covers virtual currency that is not issued by a central authority, is designed to function as a medium of exchange, and uses encryption technology for issuance, verification, and anti-counterfeiting; it excludes payment stablecoins.
The retirement-plan provisions are written in multiple Indiana Code sections rather than in a single standalone pension chapter. That structure matters for editorial and compliance tracking because the same July 2027 offer deadline is repeated across separate programs, but each program’s governing board or committee retains rulemaking and administrative discretion. The final enrolled text should be distinguished from earlier bill versions and summaries that discussed cryptocurrency exchange-traded funds or broader investment authority for public assets. Source review should prioritize the enrolled act for final obligations.
HEA 1042 also creates a wider Indiana digital-asset framework. It restricts most public agencies, except the Department of Financial Institutions, from adopting rules that would prohibit, restrict, or impair the use of digital assets for legal goods and services or the use of self-hosted or hardware wallets. It also limits extra taxes or fees on those activities when comparable non-digital-asset transactions are not subject to the same burden.
The act further addresses blockchain nodes, blockchain software development, digital asset transfers, staking, and mining. It states that development or use of software for noncustodial digital-asset transfers is not included in “money transmission” for Indiana money-transmitter law, and it limits when a court may compel disclosure of a digital asset private key.
As of June 9, 2026, this profile treats HEA 1042 as enacted but not yet effective. The controlled status taxonomy should therefore use “Enacted,” not “Effective,” until the July 1, 2026 operative date. Editors should revisit the profile after the effective date and again before July 1, 2027, when covered plans must make the brokerage-account crypto option available. This summary is for legal-reference purposes only and does not provide legal, investment, tax, or retirement-planning advice.
Covered programs must offer a regular investment program through a self-directed brokerage account with at least one cryptocurrency option.
The act repeats a not-later-than July 1, 2027 offer deadline across the covered plan provisions.
Boards or committees may set investment limits, participant-selection rules, valuation methods, expense allocations, and fees.
Defines cryptocurrency as certain decentralized virtual currency using encryption technology and excludes payment stablecoins.
Restricts most agencies and local units from impairing digital-asset payments, self-custody, nodes, software, transfers, staking, or mining.
Courts may compel disclosure of a digital asset private key only when no other admissible information is sufficient to provide access.
HB 1042 was introduced by Rep. Kyle Pierce and referred to the House Committee on Financial Institutions.
The House passed HB 1042 on third reading.
The Senate passed the bill on third reading.
The House concurred with Senate amendments and signed the enrolled bill.
The Governor signed the bill, and it was recorded as Public Law 49.
Hoosier START, Indiana Department of Financial Institutions, Indiana General Assembly, Public Employees’ Retirement Fund, Teachers’ Retirement Fund
Cryptocurrency, Digital assets, Stablecoins
Profile focuses on the public retirement-plan crypto investment option provisions of Indiana HEA 1042. The act also contains broader digital asset provisions. Not legal, tax, retirement-planning, or investment advice.
