Indiana passes crypto rights bill on taxes

Indiana lawmakers have passed House Bill 1042, sending the crypto rights legislation to Governor Mike Braun after it cleared both chambers by a 59–33 vote.

The bill seeks to protect Bitcoin and broader cryptocurrency investor rights by banning discriminatory taxes and preventing state and local agencies from restricting lawful crypto payments, self-custody and mining operations.

If signed, most provisions would take effect July 1, while a requirement for certain state retirement and savings plans to offer a self-directed brokerage account with at least one crypto investment option would take effect by July 1, 2027.

The retirement provision would apply to the legislators’ defined contribution plan, the Hoosier START plan and specified public employee and teacher retirement funds, marking the first time Indiana residents could access crypto exposure within these state-linked plans.

Under the legislation, public agencies other than the Department of Financial Institutions would be barred from imposing regulations that prohibit digital asset payments for legal goods and services or levy special taxes on crypto transactions and self-custodied holdings.