Pennsylvania Bill Bans Public Officials from Crypto Holdings, Mandates Divestment and Disclosures

Pennsylvania lawmakers have advanced House Bill 1812 (HB1812), a proposed measure that would significantly restrict public officials’ and their families’ involvement in cryptocurrency and digital assets. The bill, introduced by Democratic Representative Ben Waxman, prohibits state officials and their immediate family members from owning or trading digital assets—including cryptocurrencies, NFTs, and memecoins—while in office and for one year after leaving [1]. It also requires officials to divest any digital assets within 90 days of assuming office, with those already in office facing the same deadline if the bill passes [2].

Under HB1812, public officials must disclose any digital asset holdings valued at more than $1,000 annually. These disclosures would be included in publicly accessible financial reports, enhancing transparency and accountability in governance [3]. The legislation aligns with Pennsylvania’s broader Ethics Act and introduces penalties of up to $50,000 for non-compliance. In cases of severe misconduct, additional fines or imprisonment may apply [4].

The bill reflects a growing national conversation about the ethical implications of cryptocurrency in public service. Recent attention has focused on the crypto ties of high-profile political figures, including President Donald Trump and his family. Trump’s son, Eric, co-founded American Bitcoin, and the Trump family has investments in various blockchain-related ventures. The family’s ownership of Truth Social, a social media platform that has filed for several crypto ETFs, has also drawn scrutiny [5].

HB1812 is part of a broader legislative trend. Similar measures have been introduced at the federal level, including House Democrat Maxine Waters’ Stop Trump in Crypto Act, which aims to prevent senior government officials from engaging in crypto activities. In parallel, Pennsylvania has also moved to regulate digital asset transmitters by requiring state licenses—a move that aligns it with other states like New York [6].

The proposed restrictions are designed to address the inherent volatility and speculative nature of digital assets, which can pose unique risks to public integrity. By imposing divestment and disclosure mandates, HB1812 aims to prevent conflicts of interest and reduce the potential for corruption in an evolving financial landscape [7]. The bill also signals a legislative stance against the misuse of public office for personal financial gain in the crypto space [8].

HB1812 remains in the early stages of legislative review, but its introduction underscores the challenges lawmakers face in regulating digital assets while maintaining public trust. If passed, the bill could set a precedent for other states seeking to establish ethical frameworks for digital asset engagement by public officials [8].

Source:

[1] title: Pennsylvania Introduces HB1812 to Ban Public Officials ... (https://coincentral.com/pennsylvania-introduces-hb1812-to-ban-public-officials-from-holding-crypto/)

[2] title: Pennsylvania bill bans public officials from crypto ... (https://cryptoslate.com/pennsylvania-bill-bans-public-officials-from-crypto-transactions-mandates-disclosures/)

[3] title: Pennsylvania Proposes Crypto Ban for Public Officials and ... (https://www.ainvest.com/news/pennsylvania-proposes-crypto-ban-public-officials-families-2508/)

[4] title: Pennsylvania Lawmakers Push Strict Limits on Crypto ... (https://cryptodnes.bg/en/pennsylvania-lawmakers-push-strict-limits-on-crypto-holdings-for-public-officials/)

[5] title: Daily Cryptocurrency Market Update (2025-08-22) (https://news.futunn.com/en/post/60972890/daily-cryptocurrency-market-update-2025-08-22)

[6] title: Pennsylvania Proposes New Ethics Bill to Restrict Public Officials' Crypto Holdings (https://www.facebook.com/photo.php?fbid=75156****423496&set=a.130****63246274&type=3)

[7] title: Pennsylvania Bill Proposes Restrictions on Cryptocurrency Holdings for Public Officials (https://www.binance.com/es-MX/square/news/all)

[8] title: Trump to Make Major Announcement from Oval Office (https://m.economictimes.com/crypto-news-today-live-22-aug-2025/liveblog/123439323.cms)