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Across the country, digital assets are reshaping the way Americans save, invest and participate in the economy. From blockchain technologies to exchange-traded funds built on cryptocurrency, financial innovation is moving quickly, and states that fail to adapt risk being left behind.
Indiana should not be one of them.
That is why I introduced House Bill 1042, a forward-looking measure designed to responsibly expand access to cryptocurrency investments while positioning Indiana as a leader in emerging digital asset technologies. I appreciate the work of Financial Institutions Chair Jake Teshka, Rep. Heath VanNatter and Rep. Chris Judy in co-authoring this bill.
For decades, our public retirement and savings programs have evolved to reflect a changing marketplace. Cryptocurrency exchange-traded funds—called ETFs—are now regulated investment vehicles, increasingly used by everyday investors, not just financial insiders. It is only reasonable that we evolve to add these funds as a new option here in Indiana.
HB 1042 would require several state-administered retirement programs to offer cryptocurrency ETFs as standard investment options, allowing Hoosiers to diversify their portfolios within a regulated framework.
Just as important, the bill would permit certain state pension funds to invest a portion of their assets in these ETFs, creating long-term value while adhering to strict fiduciary safeguards. It also authorizes the treasurer of state to invest designated funds in stablecoin ETFs, asset-backed instruments designed to reduce volatility.
This approach is not about speculation. It is about modernization, consumer empowerment and preparing Indiana for the future.
Digital assets are not going away. They are becoming a routine feature of everyday finances, used for payments, savings and even supply-chain verification. HB 1042 helps Indiana engage with this new reality in a smart, responsible way, establishing guardrails while allowing innovation to flourish.
The bill also ensures that a patchwork of local regulations does not stifle progress. Under HB 1042, local governments would not be able to unreasonably restrict digital asset payments, custody or mining when traditional financial activities are allowed under similar circumstances.
Consistency matters. A predictable regulatory environment is essential if Indiana wants to attract businesses, create jobs and encourage technological advancement.
Finally, the legislation protects Hoosiers’ privacy by clarifying that private digital asset keys, akin to the password to your bank account, cannot be compelled except by a court and only when no other admissible information can provide access. This is a common-sense safeguard that aligns with constitutional protections and reflects the unique nature of digital property.
Indiana has an opportunity to lead. By embracing innovation with thoughtful oversight, we can expand investment options, strengthen consumer protections and signal to the nation that our state welcomes the next generation of financial technology.
The question is not whether digital assets will play a significant role in our economy; it is whether Indiana will be prepared. HB 1042 makes sure the answer is yes.•
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Pierce, a Republican from Anderson, represents Indiana House District 36.
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