Pennsylvania Bill Could Ban Public Officials From Holding Bitcoin, Require Divestment Over $1,000

• HB1812 forces public officials to divest Bitcoin and crypto holdings above $1,000

• Violations can incur civil fines up to $50,000 or felony charges with up to five years’ imprisonment.

• Bill aligns with federal proposals and coincides with Bitcoin trading near $112,606 after rejection at $114,000.

Pennsylvania Bitcoin ban: HB1812 forces disclosure and divestment of crypto holdings over $1,000. Read the penalties, timeline, and market impact—stay informed.

What does HB1812 require of public officials regarding Bitcoin and crypto?

HB1812 requires Pennsylvania public officials and immediate family members to disclose digital asset holdings above $1,000 and divest those assets within 90 days of the law taking effect. The bill also bans crypto transactions while in office and for one year after leaving, enforced by state ethics authorities with civil and criminal penalties.

How does the bill define digital assets and what scope does it cover?

The bill defines digital assets broadly to include Bitcoin, altcoins, memecoins, stablecoins, NFTs, derivatives, and exchange-traded funds tied to crypto. The amendments are to Title 65 of the Pennsylvania Consolidated Statutes, expanding existing ethics standards to encompass on-chain and off-chain holdings and transactions.

What penalties and enforcement mechanisms are included in HB1812?

Violations expose officials to civil fines up to $50,000 or felony charges with imprisonment up to five years. The law provides a 60-day implementation period for administrative setup and gives oversight to state ethics authorities, which will handle disclosures, compliance checks, and enforcement actions.

Why is Pennsylvania proposing a Bitcoin ban for public officials now?

Lawmakers say the measure aims to prevent conflicts of interest tied to volatile crypto markets and to align state-level ethics rules with recent federal proposals. Federal activity includes measures introduced in Congress to limit officials’ crypto holdings; HB1812 mirrors that intent at the state level while adding specific disclosure and divestment timelines.

National context and market impact: How might HB1812 affect markets and public trust?

HB1812 follows a pattern of legislative scrutiny over official holdings. The proposal seeks to strengthen public trust by reducing potential self-dealing. Market impact is likely limited directly, but regulatory actions can influence investor sentiment. Bitcoin trades near $112,606, down 1.49% on the day and up 83.58% year-over-year, per CoinMarketCap (plain text).

How should public officials comply if HB1812 becomes law?

Officials must inventory digital assets and report holdings exceeding $1,000, then divest within 90 days. They must cease crypto transactions while in office and for one year after. Ethics authorities will issue guidance and administer any disclosure forms and compliance timelines.

Frequently Asked Questions

Does HB1812 ban all crypto ownership for public officials?

The bill bans ownership above $1,000 by requiring disclosure and divestment; it effectively prohibits continuing holdings above that threshold during and for one year after service, plus it bans crypto transactions during the same periods.

Will family members of officials be affected?

Yes. The bill extends disclosure and divestment requirements to immediate family members to prevent indirect conflicts of interest through household holdings.

What are the legal penalties for non-compliance?

Non-compliance can trigger civil fines up to $50,000 and possible felony charges carrying up to five years in prison, subject to enforcement by state ethics authorities after the 60-day implementation period.

Key Takeaways

• Scope: HB1812 covers Bitcoin and a broad range of digital assets including NFTs and stablecoins.
• Timeline: Disclosure above $1,000 and divestment within 90 days; 60-day administrative setup; bans transactions while in office and one year after.
• Penalties: Civil fines up to $50,000 and potential felony charges with imprisonment up to five years.

Conclusion

HB1812 represents a significant move by Pennsylvania to limit public officials’ exposure to crypto markets through disclosure, divestment, and transaction prohibitions. The proposal aims to reduce conflicts of interest and aligns with federal legislative trends. Observers should watch the ethics authority guidance and legislative progress; stakeholders can prepare by inventorying digital holdings now.

By: COINOTAG — Published: 21 August 2025, 22:49:34 GMT +0000 — Updated: 21 August 2025, 22:49:34 GMT +0000

Source: X