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Pennsylvania Moves to Prohibit Politicians From Profiting Off Digital Assets
Pennsylvania Representative Ben Waxman has introduced groundbreaking legislation aimed at preventing elected officials from profiting from cryptocurrency while serving in public office. The HB1812 bill, introduced Wednesday with eight Democratic co-sponsors, directly responds to concerns about federal-level cryptocurrency activities.
Targeting Presidential Crypto Ventures
Waxman explicitly cited President Donald Trump’s involvement in crypto projects as motivation for the legislation. The Democrat accused Trump of financially benefiting from ventures like his Official Trump memecoin, currently trading at $8.43, while simultaneously pushing policies to reduce federal crypto market oversight.
“In Pennsylvania, no public official should be allowed to use their office to enrich themselves through cryptocurrency schemes,” Waxman stated, emphasizing the bill’s comprehensive scope covering launching, promoting, or trading digital assets with personal financial interests.
Comprehensive Financial Restrictions
If passed, the legislation would amend Title 65 of Pennsylvania Consolidated Statutes to establish strict crypto-related restrictions for public officials and their immediate families. The bill prohibits “prohibited financial transactions” involving more than $1,000 in cryptocurrency during their terms and extends restrictions for one full year after leaving office.
The proposed law includes a 90-day divestment requirement for existing crypto holdings once the legislation becomes effective, ensuring complete separation from digital asset investments.
Severe Penalties and Enforcement
Violations carry substantial consequences, including fines up to $50,000 for financial infractions. More serious violations of restricted activities could result in up to five years imprisonment, demonstrating the legislature’s commitment to enforcement.
Broader Political Context
The crypto ban proposal follows broader Democratic efforts at federal and state levels to restrict public officials’ involvement in digital assets. Several Congressional Democrats have introduced similar federal legislation targeting presidential and congressional cryptocurrency activities.
Bitcoin Reserve Plan Rejected
Interestingly, Waxman’s restrictive proposal contrasts sharply with Representative Mike Cabell’s previously introduced bill, which would have allowed Pennsylvania’s treasurer to invest up to 10% of state funds in Bitcoin. That Bitcoin reserve plan, introduced in November, never progressed beyond the House finance committee, highlighting Pennsylvania’s conflicted approach to cryptocurrency policy.
This legislative push reflects growing scrutiny of the intersection between public service and personal cryptocurrency profits.
