Crypto: Indiana Pushes Back Against Discriminatory Taxes

In the United States, the regulatory battle around cryptos is now playing out at the state level, and Indiana has just sent a strong political signal. Lawmakers have passed the House Bill 1042, a text that frames the rights of crypto holders, prohibits certain taxes deemed discriminatory, and paves the way for asset exposure in public retirement plans. Transmitted to Governor Mike Braun, the bill could take effect as early as July 1 for the bulk of its provisions.

A Strengthened Legal Framework for Crypto Uses

While negotiations for the adoption of the CLARITY Act continue at the national level, House Bill 1042 (HB1042) was adopted Wednesday by Indiana legislators with 59 votes for and 33 against, according to Legiscan data.

The text, dedicated to “regulation and investment of cryptocurrency”, was transmitted to Governor Mike Braun and is now pending his signature for enactment.

The bill provides several structural provisions:

• A ban for local and state public agencies, except the Department of Financial Institutions, from adopting or enforcing rules that would prohibit crypto payments for legal goods and services;
• The protection of the right to personal custody, preventing the authorities from forbidding an individual to keep their cryptos themselves;
• The prohibition of imposing specific taxes or fees targeting crypto payments or assets held in personal custody;
• The ban on applying regulations that would prohibit mining activities for companies or individuals.

If the governor signs the bill, most provisions would take effect on July 1.

An Unprecedented Opening Towards Crypto Retirement

Beyond the usual guarantees, the bill stands out for its section dedicated to public retirement plans. Indeed, the Indiana bill would be the only legislative text aimed at offering self-directed brokerage accounts to facilitate the integration of cryptos into retirement plans among similar bills discussed in other states.

HB1042 would require certain public savings and retirement plans to offer a self-directed brokerage account including at least one investment option in cryptocurrency.

This obligation would notably concern the defined contribution plan for legislators, the Hoosier START program, some public employee retirement funds, as well as funds intended for teachers. Implementation of this provision would come later, with a deadline set for July 1, 2027, separate from the general enactment of the bill.

Now only the governor’s signature remains. If HB1042 is enacted, Indiana could position itself as a regulatory laboratory, balancing the protection of crypto uses and opening toward public retirement. In a fragmented American landscape, this bill fits into a broader dynamic, often associated with the Genius act, which progressively redraws the institutional integration of digital assets.