Pennsylvania legislators are pushing a new bill that would ban public officials from holding or trading digital assets, including bitcoin, while in office — and even for a year after leaving.

The proposal, House Bill 1812 (HB1812), was introduced by Representative Ben Waxman, a Democrat representing District 182 in Philadelphia, and co-sponsored by several other lawmakers.

It aims to close what Waxman and others call an “ethical loophole” that could allow elected officials to use their influence to personally profit from the growing digital asset industry.

If passed, HB1812 would require all Pennsylvania public officials to disclose digital asset holdings above $1,000 and divest any amounts above that within 90 days of the law taking effect. This would apply not only to officials themselves, but also to their immediate family members.

The law would also prohibit officials and their families from conducting digital asset transactions during their time in office and for one year after leaving.

That includes direct ownership of coins like bitcoin, investments in funds or trusts that hold digital assets, and even exposure through exchange-traded funds (ETFs) or derivatives.

The bill defines “digital assets” broadly to include cryptocurrencies, memecoins, stablecoins, non-fungible tokens (NFTs), and other blockchain-based tokens.

Violations of the law could be serious. The bill classifies certain breaches as felonies that carry fines of up to $10,000 or prison time of up to 5 years. Other restricted activities could result in civil penalties, up to $50,000.

Waxman said he was motivated in part by “corruption” at the federal level, pointing to President Donald Trump.

The Pennsylvania lawmaker accused Trump of using his office to promote and profit from digital asset projects, including a token with his name on it.

“In Pennsylvania, no public official should be allowed to use their office to enrich themselves through cryptocurrency schemes,” Waxman said when introducing the bill.

The bill reflects growing national concern about conflicts of interest when politicians engage with digital assets.

At the federal level, Congressman Ritchie Torres introduced the “Stop Presidential Profiteering from Digital Assets Act” and Senator Adam Schiff put forward the COIN Act, both of which would prohibit public officials — including the president — from issuing, promoting or trading digital assets.

Proponents of the Pennsylvania bill say HB1812 would increase public trust in government. By requiring officials to disclose and divest digital assets, they argue, the bill would reduce the chance of backroom deals or policies written to benefit politicians’ personal investments.

The bill is modeled after existing financial disclosure laws in Pennsylvania, which already require reporting of certain assets and investments. The $1,000 reporting threshold for digital assets was chosen to match those standards.

Waxman said it’s not about stopping people from owning bitcoin, it’s about preventing conflicts of interest among public officials.

While the bill has bipartisan support in the state legislature, critics say it’s hard to enforce. With digital assets being decentralized and pseudonymous, tracking officials’ holdings isn’t always straightforward.

---

Filed under: Altcoins - @ August 23, 2025 11:50 am