| Key Points: – Defined benefit pensions barred from cryptocurrency ETFs under amended HB 1042. – Defined contribution plans may access crypto via member-directed brokerage windows. – Access limited to exchange-listed products, avoiding direct token holdings and custody complexities. |
Indiana’s Senate Insurance and Financial Institutions Committee advanced HB 1042 with amendments that reshape crypto access for state retirement plans. As reported by Indiana Capital Chronicle, the latest draft removes authority for defined benefit pensions to invest in cryptocurrency exchange-traded funds (ETFs) while preserving a pathway for member-directed options via defined contribution plans.
Under the current version, crypto exposure would come, if offered, through self-directed brokerage windows in defined contribution arrangements rather than direct token holdings. The change narrows operational and custody complexities by confining access to exchange-listed products and keeping plan-level assets in defined benefit portfolios outside crypto ETFs for now.
How INPRS could implement crypto exposure
The Indiana Public Retirement System (INPRS) could implement access through a self-directed brokerage account that offers cryptocurrency ETFs alongside other listed funds. This structure separates core plan menus from higher-volatility options, allowing fiduciaries to manage disclosures, trading mechanics, and vendor oversight without taking on direct digital-asset custody.
Editorial context: INPRS has maintained a neutral posture as the bill evolved and worked with lawmakers on guardrails before any member-facing rollout. Tom Perkins, investment counsel at the Indiana Public Retirement System, said, “We’ve worked with the House to get it to the current form and (we’re) more or less happy with it.”
Sponsor intent emphasizes optionality and prudence. According to Indiana House Republicans, Rep. Kyle Pierce framed HB 1042 as expanding “investment choices” while setting “guardrails,” and as part of a broader look at how digital assets and blockchain could benefit state programs.
Member impact: options, risks, and practical takeaways
Will defined benefit pensions hold crypto under HB 1042?
No. The Senate committee removed language that would have permitted defined benefit pension allocations to cryptocurrency ETFs, so pension assets would not hold crypto or crypto ETFs under the current bill. Any future change would require new legislative action.
How could defined contribution participants access crypto exposure?
If INPRS proceeds, access would likely be through a self-directed brokerage window limited to cryptocurrency ETFs, not direct tokens. Expect fiduciary guardrails such as volatility disclosures, operational limits within the brokerage channel, and ongoing oversight of ETF providers and plan communications.
At the time of this writing, Coinbase Global (COIN) traded near $161.04, up about 10.21% intraday, based on data from Yahoo Finance. That backdrop underscores why any option would remain discretionary, ETF-based, and paired with clear risk disclosures.
Disclaimer:
The information provided on AiCryptoCore.com is for educational and informational purposes only and does not constitute financial, investment, or trading advice. Cryptocurrency investments involve risk and may result in financial loss. Always conduct your own research and consult with a qualified financial advisor before making any investment decisions.
