Indiana Moves Closer to Letting Retirement Funds Buy Crypto ETFs

Indiana advances HB1042 with a “do pass” vote, permitting state retirement funds to assess crypto ETF investments under fiduciary rules.

Indiana lawmakers have advanced House Bill 1042 with a “do pass” recommendation, moving the state closer to allowing retirement funds to invest in crypto ETFs.

The proposal would permit state-managed pension funds to explore digital asset exposure under existing fiduciary standards. The bill does not require investment but allows boards to evaluate crypto exchange-traded funds within a regulated framework.

Senate Committee Advances HB1042 With “Do Pass” Vote

The Indiana Senate committee approved HB1042 and sent it forward for further consideration. The measure allows public retirement systems to assess crypto ETFs as potential investment options.

Pension boards would retain discretion and must follow fiduciary duties.

The bill outlines that any allocation must comply with risk management standards.

Lawmakers stated that exposure would be subject to review and oversight. The framework calls for feasibility studies before capital is committed.

Bipartisan backing helped move the bill through committee. Supporters cited the need for modernization in pension investment strategies.

They also referred to increasing institutional participation in digital assets.

Risk Controls and Limited Exposure Requirements

Indiana lawmakers advanced a bill to allow state retirement funds to invest in crypto ETFs, issuing a “do pass” recommendation in committee.

The proposal gives pension boards authority to evaluate regulated digital asset ETFs under existing fiduciary standards, but it does not require any mandatory allocation.

HB1042 requires retirement systems to complete risk assessments, compliance reviews, and due diligence before investing in crypto ETFs.

Pension managers must also document how any allocation aligns with long-term funding obligations and overall portfolio strategy.

The legislation favors limited exposure rather than broad investment.

Lawmakers acknowledged volatility and fraud risks tied to cryptocurrencies, and they confirmed that oversight controls and governance standards would remain in place.

Related Reading:  Indiana Lawmakers Call For Bitcoin Inclusion In Pension Plans

Shift From Restrictions to Structured Adoption

Earlier discussions in Indiana focused on regulating or banning cryptocurrency kiosks.

Concerns were raised about scams and misuse of digital assets. The current bill shifts attention toward institutional investment rather than retail access.

The updated version allows consideration of crypto ETFs instead of direct token purchases.

This structure may provide regulated exposure through established financial products. ETF vehicles operate within existing securities laws and reporting standards.

The proposal now moves to the next legislative stage for debate and possible amendments.

Advocacy groups and industry operators are expected to provide input. Final approval will depend on further review and negotiation within the state legislature.

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