Support for 529 Plans

A 529 plan is a U.S. savings program that allows families to set aside money for their children’s future education with tax advantages. Its main drawback is limited investment flexibility, since states usually offer only a narrow selection of funds—often underperforming compared with IRAs and HSAs. According to the Bitcoin Policy Institute, this makes it harder for families to protect their savings from rising tuition costs and inflation.

The institute’s analysis shows that even a small allocation to Bitcoin—around 1–2%—could improve long-term portfolio performance and boost resilience during market volatility. Model portfolios that included Bitcoin achieved higher annual returns and better efficiency metrics without a significant increase in risk. For this reason, the authors suggest updating federal guidelines or changing tax rules so that 529 plans could allow investments in Bitcoin. They also note that Wyoming could create the nation’s first such plan, potentially encouraging other states to modernize their offerings.

At the same time, interest in digital assets within retirement programs is growing. More and more Americans want their savings to include cryptocurrencies, gold, real estate, and other alternative assets. In Indiana, House Bill 1042 has been introduced to require public retirement programs to offer Bitcoin-related investment options. The bill also outlines rules for storing digital assets, processing payments, and mining initiatives. If passed, Indiana would become the first state with such a mandate. Similar steps have been taken in Oklahoma, Kentucky, Wyoming, and Arizona, where lawmakers are strengthening the right to self-custody cryptocurrency or allowing digital-asset investments in public funds.