IN HB1042

Requires state retirement and deferred compensation plans to offer at least one cryptocurrency investment option through self-directed brokerage accounts by July 1, 2027, covering the Indiana Public Retirement System, state deferred compensation plan, and teachers' retirement fund

Defines "cryptocurrency" as decentralized virtual currency using encryption technology, explicitly excluding payment stablecoins from the definition

Prohibits state agencies (except the Department of Financial Institutions) and local governments from restricting the use, acceptance, or self-custody of digital assets, or imposing discriminatory taxes or fees on digital asset transactions

Protects digital asset mining by preventing local governments from banning mining businesses in industrial zones or private mining in residential areas, and prohibits noise regulations that don't apply equally to other uses in the same zone

Establishes legal protections for digital asset private keys, allowing courts to compel disclosure only when no other information can provide access to the assets