Bitcoin News Today: Pennsylvania Bill Bids to Ban Officials From Holding Bitcoin and Digital Assets With $50K Fines and Jail Time

A new Pennsylvania bill, introduced on August 21, 2025, seeks to prohibit public officials and their immediate families from holding Bitcoin and other digital assets. House Bill 1812 (HB1812) would require officials to divest existing holdings within two months of assuming office and impose a one-year ban on ownership after leaving public service. Noncompliance could result in civil penalties of up to $50,000 and potential felony charges under the state's Ethics Act, including the possibility of jail time [1].

The bill explicitly covers a broad range of digital assets, including Bitcoin, altcoins, memecoins, NFTs, stablecoins, crypto-backed funds, derivatives, and ETFs. This comprehensive scope aims to eliminate potential conflicts of interest by removing financial incentives that may influence policy decisions. The proposed restrictions apply to both direct and indirect ownership, meaning investments through funds or trusts would also be prohibited [1].

Proponents argue the legislation is necessary to uphold public trust in government by ensuring officials are not financially entangled in volatile and unregulated markets. They cite the unpredictable nature of crypto assets and their potential to create conflicts of interest in public service. Critics, however, raise concerns about overreach, suggesting such measures could limit legitimate investment rights and set a troubling precedent for government interference in personal finance [1].

HB1812 is currently in the committee referral stage and has been assigned to the Committee on State Government. Before it can become law, the bill must pass through committee hearings, potential amendments, and a full legislative vote. At this early stage, its passage remains uncertain. The timeline for any final vote has not been disclosed [1].

At the federal level, no similar restrictions exist for U.S. members of Congress, though they must disclose their crypto holdings. Some lawmakers, such as Michael Collins (R-GA) and Barry Moore (R-AL), have publicly reported digital-asset ownership. This contrast highlights the patchwork nature of crypto regulations across different levels of government [1].

The bill’s introduction has generated debate over its potential motivations. With elections on the horizon, some analysts suggest the proposal may reflect partisan agendas. Others view it as a genuine effort to strengthen financial accountability in public service. Either way, it underscores the growing intersection between cryptocurrency and public governance, a relationship that is likely to remain contentious in the near future [1].

HB1812’s enforcement would fall under state ethics authorities, who would oversee compliance with the divestment and post-employment restrictions. These measures are designed to prevent revolving-door conflicts, particularly during the transition period following an official’s departure from public service [1].

Sources:

[1] Pennsylvania Bill Could Bar Public Officials and Families From Holding Bitcoin, Require Divestment Within Two Months and Carry Possible Jail Time August 21, 2025 (https://en.coinotag.com/pennsylvania-bill-could-bar-public-officials-and-families-from-holding-bitcoin-require-divestment-within-two-months-and-carry-possible-jail-time/)