Pennsylvania’s proposed crypto ban (HB1812) would bar public officials and immediate family members from launching, promoting, or trading cryptocurrencies where they hold a financial interest while in office and for one year after, require divestment within 90 days, and impose fines or criminal penalties for violations.
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Ban scope: Prohibits officials and immediate family from crypto transactions exceeding $1,000 related to personal financial interests.
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Divestment: Requires divestiture of crypto holdings within 90 days of the law taking effect.
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Penalties: Civil fines up to $50,000 and potential criminal penalties, including up to five years in prison for some violations.
Pennsylvania crypto ban HB1812: proposed statewide ban on officials profiting from crypto, divest rules, penalties. Read the bill summary and implications — act now.
The bill pushed by the representative included a ban on lawmakers and their families from “launching, promoting, or trading in coins where they hold a personal financial interest.”
What is Pennsylvania’s proposed crypto ban for public officials (HB1812)?
What is Pennsylvania’s proposed crypto ban for public officials?
Pennsylvania crypto ban HB1812 is proposed state legislation to bar elected officials and immediate family from launching, promoting, or trading cryptocurrencies tied to their financial interests while in office and for one year after, with mandatory divestment within 90 days and civil and criminal penalties for violations.
Who introduced HB1812 and why?
Representative Ben Waxman (D‑District 182) introduced HB1812 with eight Democratic co-sponsors. Waxman framed the bill as an anti‑corruption measure, citing concerns that public officials could financially benefit from crypto projects and referencing public controversies involving high-profile figures and memecoins.
What specific restrictions and penalties does the bill include?
The bill would amend Title 65 of the Pennsylvania Consolidated Statutes to:
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Prohibit public officials and immediate family from engaging in prohibited crypto transactions exceeding $1,000 while in office and for one year after.
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Require officials to divest crypto holdings within 90 days of the law becoming effective.
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Authorize civil penalties up to $50,000 and, for certain violations, criminal penalties up to five years in prison.
How does HB1812 relate to federal proposals and other state measures?
HB1812 mirrors several federal and state ethics proposals that seek to prevent elected officials from issuing, endorsing, or personally profiting from digital assets. Similar bills in Congress have targeted endorsements and sponsorships of digital assets by sitting officials, aiming to close perceived ethical gaps.
Ben Waxman said, “In Pennsylvania, no public official should be allowed to use their office to enrich themselves through cryptocurrency schemes. That’s why I’m introducing legislation to prohibit elected officials from profiting off cryptocurrency while in office.”
Frequently Asked Questions
How would HB1812 affect officials who already hold crypto?
Officials would be required to divest crypto holdings within 90 days of the law taking effect and would be barred from transactions over $1,000 related to personal financial interests while in office and for one year afterward.
Would penalties include criminal charges?
Yes. The bill proposes civil fines up to $50,000 and, for certain restricted activity violations, potential criminal penalties including up to five years imprisonment.
What enforcement mechanisms are proposed?
Enforcement mechanisms include statutory penalties within the amended Title 65 provisions and investigatory processes tied to existing state ethics and oversight bodies defined in Pennsylvania law.
How to comply with HB1812 if enacted
How can a public official comply with the proposed law?
Officials should document holdings, avoid transactions tied to personal financial interests, and follow divestment timelines. Below are practical compliance steps organized for clarity.
- Inventory holdings: List all crypto assets and holdings immediately.
- Assess transactions: Identify any holdings tied to personal financial interests or endorsements.
- Divest within 90 days: Execute divestment plans to meet the statutory deadline.
- Recordkeeping: Maintain transaction records and compliance documentation for audits.
- Legal review: Consult counsel for gray‑area assets and post‑term restrictions.
Key Takeaways
- Scope: HB1812 targets elected officials and immediate family involvement in crypto tied to their interests.
- Timing: Divestment required within 90 days; restrictions extend one year post‑term.
- Consequences: Violations may bring up to $50,000 in fines and possible criminal charges.
Conclusion
HB1812 represents a significant state‑level push to tighten ethics around digital assets. The bill seeks to prevent conflicts of interest by banning officials from profiting via crypto while in office, mandating swift divestment, and imposing strict penalties. Stakeholders should monitor legislative progress and prepare compliance plans accordingly.
