Indiana Lawmaker Champions Bitcoin Inclusion in Pensions and Investment Funds
An Indiana legislator is pushing to let state pensions and investment funds buy Bitcoin—a move that could funnel public money into the volatile crypto market.
Why This Matters
This isn't just another pro-crypto bill. It's a direct attempt to legitimize Bitcoin as a reserve asset for public trust funds, potentially setting a precedent other states could follow. The proposal would amend existing statutes to explicitly permit allocations to digital assets.
The Bull Case
Proponents argue Bitcoin offers a hedge against inflation and currency debasement—a modern-day digital gold for retirement portfolios. They see early adoption as a strategic advantage for generating outsized returns, something traditional bond-heavy funds have struggled with in recent years.
The Skeptic's Corner
Critics call it a reckless gamble with public servants' retirement security. Bitcoin's infamous price swings could turn a pension fund's quarterly report into a horror story overnight. It’s the ultimate high-risk, high-reward play—using taxpayer-backed guarantees to bet on an asset class that still makes Wall Street veterans break out in hives.
One cynical finance jab: Because nothing says 'prudent fiduciary duty' like allocating grandma's pension to an asset that can drop 20% before lunch.
The Bottom Line
This legislative push signals a growing political effort to bridge traditional finance and the crypto ecosystem. Its success or failure will be closely watched, potentially opening the floodgates—or slamming the door shut—on public institutional investment in digital currency.
Indiana lawmaker submits bill to include Bitcoin in pensions
The bill was introduced and submitted before Indiana’s House Financial Institutions Committee. In the middle of redistricting discussions, the 2026 Indiana Legislative Session began on Monday, rather than in January.
Pierce, who punched his ticket to the Indian General Assembly in 2022, mentioned in a statement that Indiana should be ready to engage in a smart and responsible way.
He also added that the bill will provide Hoosiers with more investment choices while establishing the right guardrails. The version of the bill introduced this week includes language requiring the statement to look into how digital assets could be used by the government while leaving room for pilot programs.
While legislation WOULD prevent local governments from kicking out miners from areas zoned for industrial use, it would also protect mining in private residences located in the area.
The initiative from Indiana is different from bills submitted by other states that allow governments to make allocations to digital assets on their behalf.
Examples of such bills are the one that was passed in New Hampshire. In the bill signed back in May, Governor Kelly Ayotte signed off on the state creating its Bitcoin reserve. “New Hampshire is once again first in the nation!” Ayotte wrote on X at the time. “Just signed a new law allowing our state to invest in cryptocurrency and precious metals.”
States continue to move forward with crypto-related bills
Other crypto-related bills that have been introduced in the United States have sought to tax transactions to fund public health measures. An example is the one that was introduced by New York lawmaker Phil Steck. The bill, Bill A0966, will see New York impose a 0.2% excise tax on crypto transactions, using the proceeds to help schools combat substance abuse in upstate New York, where an opioid epidemic has severely impacted communities for years.
Steck mentioned at the time that they could generate an estimated $158 million in annual revenue from crypto investors who are driven by the single motive of making profits. “The funding shall be used to expand the substance abuse prevention and intervention program to schools in upstate New York,” a separate description of the bill states.
Meanwhile, Wyoming also announced its crypto initiatives to assist schools. The state plans to use funds generated by the reserves of its stablecoin to improve its education fund.
In addition, state lawmakers have also been proposing various bills that look like the strategic reserve for bitcoin that was announced by United States President Donald Trump. The president signed an executive order, announcing that a digital asset stockpile will be created.
The development was announced by WHITE House AI and Crypto Czar David Sacks, who claimed that the initiative would not cost taxpayers, noting that it would be created with Bitcoin forfeited through seizures.
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