Pennsylvania Bill Bans Officials from Crypto Trading for 1 Year Post-Term

Pennsylvania Representative Ben Waxman has introduced a proposal seeking to bar public officials—including state lawmakers and their families—from engaging in cryptocurrency trading while in office, marking a significant step toward curbing perceived conflicts of interest in the political sphere. Dubbed House Bill 1812 (HB1812), the legislation would prohibit officials from profiting from digital assets during their term and for a one-year period following their departure from office. Any individual found engaging in transactions exceeding $1,000 in crypto would face severe consequences, including fines of up to $50,000 or imprisonment for up to five years [1].

Waxman, a Democrat from District 182, has framed the bill as a necessary measure to prevent corruption, particularly in the wake of high-profile figures allegedly leveraging their influence for financial gain in the crypto space. He cited former U.S. President Donald Trump as an example, alleging that Trump’s memecoin, “Official Trump,” represents a conflict of interest and contributes to a climate where unregulated projects can thrive [2]. The bill also prohibits officials from launching or sponsoring crypto projects, further reinforcing its anti-corruption stance [3].

Under HB1812, officials would be required to divest or disclose any existing crypto holdings, aligning with broader calls for increased transparency in public financial dealings. The bill has already garnered eight co-sponsors from the Democratic Party, signaling some level of initial support [4]. However, it has also faced criticism from those who argue it could unfairly limit the financial independence of elected officials or discourage engagement with emerging technologies like blockchain [5].

The debate surrounding HB1812 reflects a growing national conversation on the ethical implications of crypto trading by public officials. Similar legislative efforts are being advanced at the federal level by lawmakers such as Congressman Ritchie Torres and Senator Adam Schiff, indicating that Pennsylvania’s initiative may serve as a model for wider adoption [6].

Proponents of the bill emphasize that digital assets, particularly memecoins and non-fungible tokens (NFTs), can be exploited for personal gain through opaque or manipulative practices. They argue that HB1812 would help establish a more ethical governance framework by limiting opportunities for abuse [7]. Critics, however, warn that the legislation could hinder innovation in the crypto sector and raise questions about the balance between personal financial freedom and public accountability.

HB1812’s introduction marks a pivotal moment in the evolving relationship between cryptocurrency and public office. Whether it becomes law will depend on the strength of its legislative support, the intensity of public debate, and the broader political climate surrounding crypto regulation [9].

Source:

[1] Pennsylvania Bill Bans Public Officials from Crypto Holdings – Mandates Divestment and Disclosures (https://www.ainvest.com/news/pennsylvania-bill-bans-public-officials-crypto-holdings-mandates-divestment-disclosures-2508/)

[2] Pennsylvania Lawmaker Proposes Ban on Public Officials from Engaging in Crypto Transactions (https://cointelegraph.com/news/pennsylvania-bill-ban-public-officials-crypto)

[3] Pennsylvania Bill HB1812 Bans Crypto for Public Officials (https://www.xt.com/en/blog/post/pennsylvania-bill-hb1812-bans-crypto-for-public-officials)

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

[5] Anxiety Over Crypto Profits Drives Pennsylvania to Pledge Honest Government (https://coinpaper.com/10669/anxiety-over-crypto-profits-drives-pennsylvania-to-pledge-honest-government)

[6] CFTC Kicks Off Second Crypto Sprint Under Trump (https://coinpaper.com/10659/cftc-kicks-off-second-crypto-sprint-under-trump)

[7] Cryptocurrency Live News & Updates: Pennsylvania Representative Ben Waxman Proposes Bill HB1812 (https://m.economictimes.com/crypto-news-today-live-22-aug-2025/liveblog/123439323.cms)

[9] Could U.S. Politicians Lose Their Bitcoin? Pennsylvania Lawmakers Debate Bill to Ban Crypto Trading (https://www.coinlive.com/news/could-politicians-lose-their-bitcoin-pennsylvania-lawmakers-debate-bill-to)