Pennsylvania Bill Proposes 1-Year Crypto Profiting Ban for Officials After Office

Pennsylvania is considering a bill, HB1812, that would significantly restrict public officials from profiting in the cryptocurrency space. Introduced by Representative Ben Waxman and co-sponsored by eight Democrats, the legislation would bar elected officials and their immediate family members from launching, promoting, or trading cryptocurrencies where they hold a personal financial interest while in office and for one year after leaving office. Under the proposed law, officials would be required to divest existing cryptocurrency holdings within 90 days of the law’s enactment [1].

The bill outlines strict enforcement mechanisms and penalties for violations. Officials found in breach of the law could face civil fines of up to $50,000 and, in some cases, criminal penalties that could include imprisonment for up to five years. The restrictions apply to any cryptocurrency transaction exceeding $1,000 that is linked to the official’s personal financial interests [1].

Waxman, in justifying the bill, pointed to the need for anti-corruption measures and highlighted the risks of public officials leveraging their positions to benefit from crypto projects. The bill draws attention to high-profile controversies involving memecoins and tokens associated with prominent figures, including Donald Trump’s TRUMP Token. The inclusion of such examples underscores the bill’s intent to address real or perceived conflicts of interest that could arise from public officials engaging in the crypto space [1].

HB1812 mirrors similar efforts at the federal and state levels to regulate public officials’ involvement with digital assets. In Congress, proposals have emerged to prevent officials from endorsing or profiting from cryptocurrencies while in office, aiming to close perceived ethical loopholes. These measures collectively reflect a growing concern over the potential for misuse of public office in the rapidly evolving crypto landscape [1].

To comply with HB1812, public officials would need to take immediate action. The bill requires officials to inventory their current cryptocurrency holdings and execute a divestment plan within 90 days. Transactions involving personal financial interests would also be prohibited, necessitating a thorough review of existing investments and endorsements. Officials are advised to maintain detailed records and seek legal counsel for ambiguous cases to ensure full compliance [1].

Despite its introduction, the bill has not advanced to enactment as of August 21, 2025. The legislative process remains ongoing, and stakeholders are encouraged to monitor developments closely. The bill represents a significant state-level initiative to regulate digital asset participation by public officials, reinforcing transparency and accountability in government [1].

Source: [1] Pennsylvania Bill Could Bar Officials From Profiting in Cryptocurrency, Cites Trump’s TRUMP Token; Bitcoin Reserve Plan Rejected August 21, 2025 (https://en.coinotag.com/pennsylvania-bill-could-bar-officials-from-profiting-in-cryptocurrency-cites-trumps-trump-token-bitcoin-reserve-plan-rejected/)