There’s a big conversation happening in Indiana right now about how pensions invest in Bitcoin. Honestly, it’s one of the most intriguing policy moves we’ve seen in the U.S. in a while. Let’s break it down.
For the first time, Indiana wants to ensure pensions invest in Bitcoin by offering crypto exchange-traded funds (ETFs) as regular investment options.
Indiana Bill No. 1042
The Bill contains important updates. First, it requires several major state retirement and savings plans to offer crypto ETFs. It includes plans for teachers, public workers, legislators, and even 529 college savings plans. That means everyday workers could choose Bitcoin ETFs the same way they pick a stock or bond fund.
The bill also allows a long list of pension funds to invest portions of their assets in crypto ETFs. This is the first time a U.S. state is considering making Bitcoin exposure a standard part of public retirement planning. On top of that, the state treasurer could invest certain funds, such as trust pools and future-generation funds, in stablecoin-based ETFs. It gives Indiana both growth-focused and stability-focused crypto options.
NEW: 🇺🇸 Indiana House introduces bill that would allow pensions to invest in Bitcoin.
The bill also aims to help protect self custody 👏 pic.twitter.com/dnGGU6DlwX
— Bitcoin Magazine (@BitcoinMagazine) December 5, 2025
A big part of the bill focuses on personal freedom with digital assets. Under Bill 1042, local governments can’t restrict crypto payments or self-custody wallets. They also can’t add special fees or taxes to crypto payments unless they apply the same fees to traditional transactions.
The bill even protects crypto mining. They allow mining in areas zoned for industrial use or within private homes. Local governments cannot impose special noise rules or zoning bans on miners. There’s also a strict privacy rule. A court can only demand a private key if no other information can unlock the asset.
Indiana’s Vision for Investing Pensions in Bitcoin
To prepare for the future, the bill sets up a “Blockchain and Digital Assets Task Force”. This group will study blockchain use cases in government, consumer protection, tax rules, and more. They’ll even propose real pilot projects for 2027.
INDIANA MOVES TO ADD BITCOIN ETFS TO STATE RETIREMENT FUNDS
Indiana lawmakers have introduced a bill that would allow state savings and retirement programs to invest in Bitcoin and crypto ETFs, aiming to position the state as a leader in digital asset adoption.
The proposal… pic.twitter.com/VGR9IH82cj
— Bitcoin News (@BitcoinNewsCom) December 5, 2025
Indiana Bill No. 1042 is a major step toward helping pensions invest in Bitcoin while also protecting everyday crypto users. If it passes, Indiana could become the first state to fully support Bitcoin investment, self-custody, and digital asset innovation by law.
Disclaimer
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