Indiana Governor Mike Braun has signed a bill allowing state employees to invest in bitcoin and other crypto assets in their retirement and savings plans. Braun transitioned from the U.S. Senate to Governor of Indiana in 2023 and is currently active in state government.
What Does the Law Cover?
The adopted law makes it mandatory for public employees to offer at least one cryptocurrency investment choice in the accounts they manage through their retirement boards and savings programs. The official start date of the application was determined as July 1, 2027. Participants will be able to direct some of their savings to bitcoin, other crypto assets or crypto-related exchange-traded funds. During this process, relevant retirement plan managers will determine the principles regarding investment preferences and controls.
Investment Options and Control
Under the new regulation, retirement account holders will be able to manage their crypto asset portfolios together with instruments such as stocks, bonds or traditional exchange-traded funds. Determining issues such as investment limitations, transaction fees and account valuations is left to the management bodies of the pension funds. The definition of crypto asset was put forward as a form of digital money that is decentralized, not issued by any state or institution, and works with encryption technology. Members of the state legislature noted that this definition provides transparency in how public investment programs approach digital assets.
The Indiana parliament evaluated that “Cryptocurrency is an asset that is not managed from a center, is controlled by an encryption system and is accepted as a medium of exchange in the digital environment. Providing a clear definition in the evaluation of the state’s investment programs will reduce uncertainty.”
With the application, public employees will be able to invest in both traditional and digital assets, depending on their wishes. Pension fund managers will have the authority to limit certain amounts in order to protect portfolio diversity.
Similar Steps from Other US States
With the law in Indiana, the state has become one of the prominent examples in the USA for the use of digital assets in public portfolios. It is noteworthy that many states across the country have been working on similar regulations recently. South Dakota has introduced legislation requiring up to ten percent of public funds to be invested in Bitcoin.
Rhode Island lawmakers have introduced a bill that would temporarily exempt small Bitcoin transactions from state income and capital gains taxes. The pilot application in question is based on the principle that individual transactions below the determined amount will not be subject to tax for a period of one year.
In May 2025, New Hampshire allowed the Treasury department to invest up to five percent of the portfolio in Bitcoin and other digital assets with high market capitalization. This decision demonstrates states’ interest in the use of digital assets in public fund management.
