Pennsylvania Bill Aims to Ban Officials from Holding Digital Assets

Pennsylvania lawmakers are pushing for the introduction of House Bill 1812, which seeks to prohibit public officials and their immediate families from owning or engaging in transactions involving Bitcoin and other digital assets [1]. The bill, sponsored by Rep. Ben Waxman and supported by seven co-sponsors, would amend state ethics and financial disclosure laws to prevent officials from holding not only Bitcoin but also altcoins, memecoins, non-fungible tokens (NFTs), and stablecoins [1]. The legislation also extends to prohibit officials from holding these assets indirectly through funds, trusts, or other financial vehicles, including derivatives and exchange-traded funds (ETFs) [1].

Under the proposed bill, any current state official who holds digital assets would be required to divest those holdings within two months of assuming office to mitigate potential conflicts of interest [1]. Additionally, officials would be barred from acquiring or holding digital assets for up to a year after leaving their government positions [1]. Failure to comply with these rules would result in severe penalties, including potential imprisonment or civil fines of up to $50,000, with violators treated as felons [1].

The bill, currently under review by the Committee on State Government, remains in the early stages of the legislative process, and its likelihood of passage is uncertain [1]. While the measure is still under scrutiny at the state level, similar concerns have also emerged at the federal level, with bipartisan support for tighter regulations on officials’ digital asset activities [1].

Notably, federal proposals such as Congressman Ritchie Torres’ “Stop Presidential Profiteering from Digital Assets Act” and Senator Adam Schiff’s Curbing Officials’ Income and Nondisclosure (COIN) Act mirror Pennsylvania’s efforts [1]. These federal initiatives aim to restrict officials from profiting from digital assets, particularly those tied to political influence, by banning the promotion or issuance of tokens linked to high-profile public figures [1]. Schiff’s COIN Act, for example, would prohibit the president, vice president, senior executive branch members, members of Congress, and their immediate families from endorsing or issuing digital assets [1].

The Pennsylvania bill reflects broader concerns over potential conflicts of interest as digital assets become increasingly mainstream and integrated into financial systems [1]. With infrastructure supporting the adoption of crypto expanding, lawmakers are increasingly scrutinizing how public officials engage with these assets to ensure ethical governance and public trust [1].

Source: [1] Lawmakers seek to ban elected officials from holding crypto (https://coinmarketcap.com/community/articles/68a7a9961ad5e62f4762dc70/)