Indiana Lawmakers Consider Bill to Allow State Funds to Invest in Bitcoin

House Bill 1322 moved forward to the full House for debate. Rep. Jake Teshka, R-South Bend, authored the bill, which would allow public employee and teacher retirement funds to invest in certain Bitcoin exchange-traded funds.

Indiana lawmakers are considering a bill that would permit state funds to be invested in Bitcoin.

House Bill 1322 has advanced to the full House for further discussion.

The bill, authored by Rep. Jake Teshka, R-South Bend, would allow public employee and teacher retirement funds to be invested in specific Bitcoin exchange-traded funds.

"We're essentially asking people to come and tell us how blockchain technology can benefit state government and its processes," Teshka said. "There is no mandate in here for any agency to participate at this time."

The bill also calls for a study on how blockchain technology could improve state operations. Supporters say it could reduce costs, enhance security and create efficiencies. Lawmakers backing the bill argued that Bitcoin offers long-term potential despite market fluctuations.

Opponents have raised concerns about financial risks, saying Bitcoin is too unpredictable.

Teshka noted that Bitcoin has outperformed traditional assets over time. He acknowledged its volatility but maintained that it is a strong investment option.

Rep. Chris Campbell, D-Lafayette, said she sees it as a major risk for retirees. She questioned how lawmakers could ensure it was a safe investment for state funds.

"When I asked about cryptocurrency investments online, it seemed like they were really discouraged," Campbell said. "Crypto is volatile and carries substantial risk. There's a lot of scamming associated with it."

Teshka said the state would carefully study the risks before making any decisions. He called Bitcoin the future of finance but stressed that Indiana would proceed cautiously. The bill now awaits debate in the House.