Pennsylvania Bill Bans Public Officials From Crypto Trading During Office

Pennsylvania Democrats have introduced a legislative proposal aimed at restricting state officials from engaging in cryptocurrency activities while in office. Sponsored by Rep. Ben Waxman and supported by eight co-sponsors, House Bill 1812 seeks to prohibit elected officials and their immediate families from profiting through crypto transactions, requiring them to divest existing holdings within 90 days of the law’s enactment. The bill also imposes a $1,000 transaction threshold, banning trades exceeding that amount during and for one year after public service. Violators could face fines up to $50,000 and potential prison terms of up to five years [1][2][3].

The proposal is framed as a response to concerns over ethical breaches and conflicts of interest in public office. While not naming any individual explicitly, Waxman has pointed to federal-level practices involving President Donald Trump, who has been linked to multiple crypto ventures including the Official Trump memecoin and World Liberty Financial. Critics argue that such projects exploit the president’s influence to attract investors, blurring the line between public service and private financial gain [1][3]. The bill aligns with similar legislative efforts in Congress, such as the Stop TRUMP in Crypto Act and the COIN Act, which also aim to restrict high-level officials from profiting off digital assets [2].

Proponents of HB1812 stress the importance of transparency and accountability, particularly in a sector characterized by volatility and regulatory uncertainty. They argue that public officials should not be in a position to leverage their roles for personal financial benefit in an industry prone to market manipulation. The initiative has received backing from anti-corruption advocacy groups and is viewed as part of a broader Democratic push to reinforce ethical standards in governance [3][4].

However, the proposal has also drawn criticism for potentially stifling economic innovation. Skeptics warn that the ban could deter investment in Pennsylvania’s tech and financial sectors, particularly as the state seeks to expand its digital economy. Some lawmakers from both parties have raised concerns about the bill’s scope, questioning its enforceability and the risk of loopholes that could allow officials to bypass the restrictions [1][2].

The timing of the bill is notable, coming amid growing scrutiny of financial ethics in public office. While the Independent Fiscal Office recently highlighted broader fiscal challenges for the state, it did not directly address cryptocurrency. Nevertheless, supporters of the bill argue that such measures are necessary to restore public trust in government and prevent self-dealing. If passed, HB1812 could serve as a model for other states considering similar restrictions on officials' involvement in the crypto market [1][3].

As the bill moves forward, it faces potential committee reviews and a full House vote. The outcome remains uncertain, but the debate has already placed Pennsylvania at the center of a national conversation on digital assets and public integrity [3][4].

Source:

[1] Pennsylvania Democrats propose crypto ban targeting lawmakers in office. (https://crypto.news/pennsylvania-democrats-propose-crypto-ban-targeting-lawmakers-in-office/)

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

[3] Pennsylvania state lawmaker proposes ban on public officials trading crypto. (https://www.thepennsylvaniapost.com/)

[4] Pennsylvania Introduces HB1812 to Ban Public Officials from Holding Crypto. (https://coincentral.com/trump-familys-crypto-ventures-stall-bipartisan-digital-asset-bill/)

[5] Report shows how Pennsylvania will be impacted by 'Big. (https://www.yahoo.com/news/articles/report-shows-pennsylvania-impacted-big-172743715.html)