Indiana legislators have taken a significant step toward embracing Bitcoin by introducing a bill that would allow the state to invest in digital assets like Bitcoin and prevent local governments from imposing restrictions on crypto companies. This move reflects the growing political and financial trend of cryptocurrencies within Indiana. Under House Bill 1042, state public investment funds would be permitted to invest indirectly in cryptocurrencies through federally regulated crypto exchange-traded funds (ETFs) that track crypto prices, rather than purchasing tokens directly. This approach offers greater stability compared to holding tokens outright, although the Securities and Exchange Commission has warned about ongoing risks of fraud and manipulation in the crypto market.
The bill mandates that several major Indiana programs, including the 529 education savings plan, Hoosier START plan, and retirement systems for teachers and public employees, include at least one crypto ETF. Other state funds would also be allowed to invest in crypto ETFs, while the state treasurer would have the authority to invest in stablecoin ETFs. Additionally, the bill prohibits local governments and state agencies from enacting unfair regulations related to digital assets and ensures the protection of private keys as confidential information. It also establishes a blockchain and digital assets task force to evaluate potential applications of the technology and recommend statewide pilot projects.
This initiative is part of a broader wave of cryptocurrency adoption in the U.S., with states like Texas and New Hampshire also moving to adopt Bitcoin as part of official reserves and financial instruments. Indiana’s bill aims to position the state prominently within the American crypto market, seeking to play a cautious yet active role in the evolving digital asset landscape.
Source: bitcoinmagazine
