Indiana Bill Promotes Broad Crypto Support, Avoids Favoring Bitcoin

Indiana Proposes Broad Cryptocurrency Legislation to Support Market Growth and Protect Miners and Investors

  • Indiana State Rep. Kyle Pierce aims for broad cryptocurrency legislation without favoring specific assets.
  • The bill omits market capitalization limits for eligible cryptocurrencies.
  • The proposal permits public services to invest in crypto-related exchange-traded funds within retirement and savings plans.
  • The legislation includes protections for cryptocurrency miners, preventing targeted negative government actions.
  • The bill seeks to establish safeguards for both cryptocurrency users and firms in Indiana.

Kyle Pierce, a Republican member of the Indiana House of Representatives, introduced legislation this month that addresses the state’s approach to cryptocurrency. His goal is to promote the cryptocurrency market broadly without favoring particular digital assets, as he explained in an interview that the bill is intentionally broad to avoid choosing “winners and losers.”

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Unlike some states, such as New Hampshire that limit government investments in digital assets to those with a market capitalization exceeding $500 billion, the proposed Indiana bill does not include market-cap thresholds. Instead, it allows public services to invest in exchange-traded funds (ETFs) that offer cryptocurrency exposure through retirement and savings programs. Pierce acknowledges not all cryptocurrencies are suitable for these investment vehicles, referring to newly created tokens as potentially inappropriate for retirement investments.

The legislation also aims to protect cryptocurrency miners, who use considerable energy to secure networks like Bitcoin, while ensuring they will not receive special treatment. The bill seeks to prevent government efforts that single out miners for negative actions. Other blockchains, like Ethereum, use significantly less energy due to their proof-of-stake consensus mechanism, which relies on a different method for securing the network with lower power consumption.

Pierce engaged with local miners and constituents while drafting the legislation and noted increased openness to crypto-focused bills after federal progress, such as the adoption of the GENIUS Act signed into law by former President Trump in July. This has led to more trust and less opposition to crypto policy initiatives in Indiana, according to Pierce.

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