Pennsylvania Proposes Crypto Ban for Public Officials and Families to Prevent Conflicts of Interest

Pennsylvania lawmakers introduced House Bill 1812 on August 20, which aims to prohibit public officials and their immediate families from engaging in cryptocurrency transactions, including the ownership or trading of digital assets such as NFTs and memecoins. The bill mandates that officials disclose any financial interest in digital assets valued above $1,000 and divest such holdings within 90 days of the bill’s enactment [1]. This measure is intended to prevent conflicts of interest and promote transparency in the use of digital assets by public officials [2].

Under the proposed legislation, public officials will be barred from conducting any crypto transactions during their term of office and for one year after leaving public service. The same restrictions will apply to their immediate family members, including spouses and dependents. This provision seeks to eliminate potential avenues for insider trading or decision-making influenced by private financial interests [3]. Failure to comply with the disclosure and divestiture requirements could result in criminal penalties, including fines of up to $10,000 or imprisonment for up to five years. Civil penalties of up to $50,000 will also apply for violations of related provisions [4].

HB1812 amends Title 65 of the Pennsylvania Consolidated Statutes, which outlines ethical standards for public officials. The bill defines “digital assets” broadly to include various forms of digital currency and tokens. It establishes a 60-day implementation period following its passage, ensuring that the necessary regulatory framework is in place before enforcement begins [5]. The legislation aligns with broader U.S. legislative efforts to address the growing prevalence of digital assets in investment portfolios and public affairs [6].

At the federal level, similar measures have been introduced to regulate crypto activities by public officials. For example, the “Stop Presidential Profiteering from Digital Assets Act” and the COIN Act propose restrictions on the ownership and promotion of digital assets by federal officials and their families. These national initiatives reflect a bipartisan concern over the ethical implications of digital assets in public service [7].

The introduction of HB1812 highlights an emerging trend in state-level regulation of cryptocurrencies, where lawmakers are increasingly seeking to impose restrictions on public officials to mitigate perceived risks. If passed, Pennsylvania would join other states in implementing stricter oversight of crypto dealings among government personnel [8]. The bill’s focus on individual conduct rather than systemic issues in the crypto industry differentiates it from broader regulatory proposals at the federal level [9].

As the bill moves through the legislative process, its impact on the balance between privacy and accountability in public service will be closely watched. By imposing clear disclosure and divestiture requirements, the legislation seeks to reinforce public trust in government operations as the digital asset landscape continues to evolve [10].

Source:

[1] Pennsylvania Proposes Crypto Holding Ban for Public Officials' Families (https://www.ainvest.com/news/pennsylvania-proposes-crypto-holding-ban-public-officials-families-2508/)

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

[3] Pennsylvania's Bill to Ban Public Officials From Owning Crypto if Passed (https://www.mexc.com/bn-BD/news/pennsylvanias-bill-to-ban-public-officials-from-owning-crypto-if-passed/69568)

[4] Pennsylvania Proposes Bill to Limit Officials' Crypto Holdings (https://ground.news/article/pennsylvania-proposes-bill-to-limit-officials-crypto-holdings-blockchain-and-cryptocurrencies-tabloid_45c091)

[5] CryptoSlate: Pennsylvania bill bans public officials from crypto transactions, mandates disclosures (https://x.com/CryptoSlate/status/195869184****508955)

[6] Holding Bitcoin Might Result in Jail Time for Pennsylvania Public Officials (https://cryptonews.net/news/legal/31478108/)

[7] CoinMarketCal - News (https://coinmarketcal.com/en/news)

[8] US explores radical legal tool to fight overseas crypto thefts (https://cryptoslate.com/us-may-revive-18th-century-letters-of-marque-to-fight-2025-crypto-mega-hacks/)

[10] Pennsylvania bill bans public officials from crypto transactions, mandates disclosures (https://www.todayonchain.com/news/article/01K3759PGMYZ38HSFYEY0NNC89)