Bitcoin News Today: Pennsylvania Proposes Crypto Ban for Officials and Families to Curb Conflicts

Pennsylvania lawmakers have introduced a bill aimed at prohibiting state officials and their immediate families from holding or benefiting from cryptocurrencies and related assets, including non-fungible tokens (NFTs). House Bill 1812, introduced by Representative Ben Waxman, seeks to amend the state’s ethics and financial disclosure laws to prevent potential conflicts of interest and enhance transparency in public service. The proposal, if passed, would make Pennsylvania one of the most restrictive states in the U.S. regarding digital asset ownership among public officials [1].

The bill mandates that officials holding government office must fully divest their digital asset holdings within 60 to 90 days of assuming office, depending on the source, and remain barred from acquiring or holding such assets for one year after leaving public service. The restrictions extend to indirect ownership, including through trusts, exchange-traded funds (ETFs), and derivatives. This broad scope would cover not only Bitcoin but also altcoins, stablecoins, NFTs, and memecoins [2].

Failure to comply with the bill’s requirements could lead to severe legal consequences. The legislation outlines civil penalties of up to $50,000 per violation and potential felony charges under the state’s Ethics Act. In extreme cases of non-compliance, officials could face imprisonment. These strict penalties underscore the intent to enforce the ban rigorously and demonstrate the seriousness with which lawmakers view ethical conduct in the digital age [3].

The proposed law is still in the early stages of the legislative process and has been referred to the Committee on State Government for review. No timeline has been set for further proceedings, and the bill remains subject to potential amendments or rejection. Unlike federal lawmakers, who are not restricted from holding cryptocurrencies but are required to disclose such assets, Pennsylvania state officials would face a complete ban under this proposal [4].

The bill’s supporters argue that the decentralized and often opaque nature of cryptocurrencies creates unique risks for public officials, who may be susceptible to undue influence or insider advantages. By imposing strict divestment requirements and long-term restrictions, the legislation aims to create a system of accountability and prevent corruption [5].

Criticism of the bill has not been prominently featured in the current news reports, which focus primarily on the bill’s structure and intended outcomes. The measure has been described as a proactive step to address the challenges posed by the rapid evolution of digital finance and to preserve public trust in government institutions [6].

If enacted, HB1812 could set a precedent for other states considering similar regulatory measures for public officials. The bill’s inclusion of post-tenure compliance provisions further reinforces its intent to prevent future conflicts stemming from prior investments [7].

Source:

[1] CryptoSlate: Pennsylvania bill could jail officials who hold crypto after 90 days (https://cryptoslate.com/pennsylvania-bill-could-jail-officials-who-hold-crypto-after-90-days/)

[2] Live Bitcoin News: Waxman Pushes Pennsylvania Bill to Ban Crypto Trading for Politicians (https://www.livebitcoinnews.com/waxman-pushes-pennsylvania-bill-to-ban-crypto-trading-for-politicians/)

[3] AInvest: Bitcoin News Today: Pennsylvania Bans Crypto Holdings for Elected Officials and Families (https://www.ainvest.com/news/bitcoin-news-today-pennsylvania-bans-crypto-holdings-elected-officials-families-curb-conflict-interest-2508/)

[4] The Shib Daily: PA Lawmaker Proposes HB1812 to Ban Officials from Trading Crypto (https://news.shib.io/2025/08/22/pa-lawmaker-proposes-hb1812-to-ban-officials-from-trading-crypto-shib-alert/)

[5] Bitbo: Pennsylvania Bill Bans Officials From Crypto Transactions (https://bitbo.io/news/pennsylvania-bitcoin-ban/)

[6] The Crypto Times: Pennsylvania Lawmakers Propose Crypto Ban for State Officials (https://www.cryptotimes.io/2025/08/22/pennsylvania-lawmakers-propose-crypto-ban-for-state-officials/)

[7] Bitget: Pennsylvania Moves Forward With HB1812 to Restrict Crypto Holdings (https://www.bitget.com/news/detail/12560604925887)