Pennsylvania Bill Could Ban Public Officials From Holding Bitcoin, Ethereum and Other Cryptocurrencies

• Proposed ban on crypto holdings for Pennsylvania officials

• Divestment required for assets above $1,000 within 90 days; sponsored by Rep. Ben Waxman

• Could influence state-level regulation and ethics rules nationwide

Meta description: Pennsylvania crypto ban for public officials — House Bill 1812 would force divestment of crypto holdings over $1,000 within 90 days; follow legislative progress.

What does Pennsylvania’s House Bill 1812 propose?

House Bill 1812 proposes that Pennsylvania public officials must divest cryptocurrency holdings exceeding $1,000 within 90 days and prohibits ownership of cryptocurrencies while in office and for one year after leaving public service. The measure is sponsored by Rep. Ben Waxman and is currently under committee review.

How would the divestment and enforcement work?

The bill sets a $1,000 threshold for mandatory divestment and a 90-day compliance window. Violations could carry penalties, including potential criminal sanctions specified in the bill text. Enforcement would rely on existing state ethics and disclosure mechanisms to identify noncompliance.

Who sponsors the bill and what rationale is provided?

Representative Ben Waxman is the bill sponsor, backed by seven Democratic co-sponsors. The stated rationale is to strengthen transparency and avoid conflicts of interest as officials increasingly hold or transact in digital assets. Rep. Waxman said the measure is “about transparency and public trust.”

Why could this matter for crypto policy nationally?

State-level ethics measures like HB 1812 can influence national debate by setting precedents for handling public officials’ crypto holdings. If adopted, similar proposals may appear in other state legislatures and could shape federal discussions on disclosure and conflict-of-interest rules for digital assets.

What immediate market or regulatory impact has been observed?

As of this report, no immediate market reaction has been recorded. The bill remains at committee review, and any regulatory impact will depend on legislative progress and potential amendments during consideration.

Frequently Asked Questions

How long do officials have to divest crypto under HB 1812?

Officials must divest cryptocurrency holdings that exceed $1,000 within 90 days of the rule taking effect or from the date of acquiring the disallowed holding, according to the bill text.

Will this apply to former officials?

Yes. The proposal extends the prohibition for one year after an official leaves public office, aiming to prevent immediate post-service conflicts of interest related to digital assets.

How can public officials comply with HB 1812?

1. Audit current crypto holdings and identify amounts over $1,000.
2. Initiate divestment within the 90-day compliance window if the bill becomes law.
3. Update public disclosure forms and report divestment actions to the relevant ethics office.
4. Seek guidance from state ethics officials to confirm compliance and document retention.

Key Takeaways

• Scope: HB 1812 targets crypto ownership by Pennsylvania public officials, including Bitcoin and Ethereum.
• Compliance: Divestment required for holdings over $1,000 within 90 days; prohibition extends one year after leaving office.
• Implications: The bill may set a precedent for state-level ethics rules on crypto and influence wider regulatory discussions.

Conclusion

This legislative proposal, House Bill 1812, underscores rising concerns about ethics and transparency in public service as cryptocurrency adoption grows. The bill’s requirement to divest holdings over $1,000 within 90 days and its post-service ban reflect a stricter approach to conflict-of-interest prevention. Stakeholders should monitor committee actions and follow updates to assess broader policy impacts.

Published by COINOTAG. Last updated: 2025-08-23.