Pennsylvania Bill Proposes Ban on Public Officials' Crypto Trading Over $1,000

Harrisburg, Pennsylvania – A new legislative effort is underway in Pennsylvania as the House of Representatives introduces a bill aimed at prohibiting public officials and their immediate families from engaging in significant cryptocurrency trading while in office. The proposed legislation, House Bill 1812 (HB1812), seeks to amend Title 65 of the Pennsylvania Consolidated Statutes to address potential conflicts of interest.

The bill, sponsored by Democrat Representative Ben Waxman of District 182, specifically targets "prohibited financial transactions" involving more than $1,000 in cryptocurrency. According to Cointelegraph, the bill would also extend this ban for a year after officials conclude their terms. Public officials would be mandated to divest from their existing crypto holdings exceeding this threshold within 90 days of the bill becoming law.

Representative Waxman stated his motivation for introducing the bill was a response to what he termed "corruption" observed at the federal level. He specifically cited concerns regarding former US President Donald Trump, alleging that Trump financially benefited from crypto projects like his memecoin, Official Trump (TRUMP), and sought to "roll back federal oversight of crypto markets." Waxman emphasized, "In Pennsylvania, no public official should be allowed to use their office to enrich themselves through cryptocurrency schemes."

The proposed ban encompasses launching, promoting, or trading in digital assets where officials hold a personal financial interest. Violations of HB1812 could lead to substantial penalties, including fines up to $50,000 and, for certain infractions, potential prison sentences of up to five years. This state-level initiative aligns with similar legislative proposals put forth by other Democrats in the U.S. Congress, aiming to restrict federal officials, including the president, from issuing, sponsoring, or endorsing digital assets during their tenure.

The introduction of HB1812 follows a previous, unsuccessful attempt in Pennsylvania to integrate Bitcoin into state finances. Earlier, Representative Mike Cabell had proposed a bill that would have allowed the state treasurer to invest up to 10% of Pennsylvania's funds in Bitcoin, a plan that ultimately did not advance past the House finance committee. The current bill highlights an ongoing debate within legislative bodies regarding the ethical implications and regulatory oversight of cryptocurrency holdings for elected officials.