Crypto accounts should not be Bitcoin or bankrupt, Indiana lawmaker says

Bitcoin may be the first cryptocurrency ever created, but it shouldn’t be the only one eliminated by legislative initiatives in the US, according to Indiana State Representative Kyle Pierce.

The Republican, who introduced legislation earlier this month, said Declutter that his bill focused on Indiana’s cryptocurrency handling was deliberately written broadly. He described that as a matter of principle, as well as optics.

“I didn’t want to be in this situation where someone can say, ‘Oh, you’re picking winners and losers,’” he said, “My goal is to promote the cryptocurrency market, not Bitcoin, Ethereum, Tether or whatever it may be.”

Pierce’s bill, in its original form, calls for the state to allow public entities to invest in exchange-traded funds that provide cryptocurrency exposure through retirement and savings programs. It also calls on Indiana to provide protections for crypto users and businesses.

The bill is distinct from legislation in states such as New Hampshirewhich allows governments to invest in digital assets themselves, with the caveat that allocations are limited to assets with a market capitalization of over $500 billion – a milestone that Bitcoin has only just reached.

Among the industry groups Pierce used as “sounding boards,” he recalled the Satoshi Action Fund, an organization that collects donations in Bitcoin but not in other digital assets. On its website, Satoshi Action says: “Our policy has been passed into law in eight states.”

Pierce said there were some discussions about a market capitalization threshold when drafting his bill, but he did not consider it a valid starting point. However, when it comes to investment options for government officials, he acknowledged that not all cryptocurrencies are suitable.

“The cryptocurrency that started last Tuesday, maybe we shouldn’t do that [enable] pension investments,” he said. “Maybe we will pass the bill.”

Still, Pierce’s legislation includes protections for cryptocurrency miners, who expend a lot of energy keeping networks like Bitcoin safe. Other blockchains, such as Ethereum, use 99.9% less energy due to the proof of stake consensus mechanism.

“They will not receive special treatment, but we will also ensure that you cannot track them down and direct negative government actions against them,” he said of miners.

As for conversations about crypto with voters, Pierce said he is engaged to a miner who is a 10-minute drive from his district’s border, as well as several individuals.

Pierce said it was difficult to get earlier hearings for crypto-focused legislation, including a bill he previously proposed with protections for miners. But that changed with the passage of stablecoin legislation at the federal level earlier this year, he said, along with President Trump signing the GENIUS Act into law in July.

“I think there’s a lot more confidence,” he said. “I don’t want to assume that it will go away on its own. You never want to do that. But there hasn’t been that much resistance yet.”