Pennsylvania’s HB1812 would ban public officials and their immediate families from holding Bitcoin and other digital assets, require divestment within two months of taking office, and prohibit ownership for one year after leaving; noncompliance can trigger fines up to $50,000 and potential felony charges.
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Potential jail time
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Will it pass?
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Crypto holders in Congress
Primary keyword: Pennsylvania bill bans Bitcoin for public officials — Read the full update and next steps for officials and stakeholders at COINOTAG.
What does HB1812 propose?
HB1812 proposes to amend Pennsylvania ethics and financial disclosure laws so that public officials and immediate family members cannot hold Bitcoin, alternative cryptocurrencies, memecoins, NFTs, stablecoins, crypto-backed funds, derivatives, or ETFs. The bill requires divestment within two months of taking office and bans ownership for one year after leaving office.
How would the divestment and post-employment ban work?
Officials must divest digital-asset holdings within two months of assuming office, a timeline aimed at eliminating ongoing financial exposure. The bill also bars ownership for one year after leaving public service. These timelines are designed to reduce conflicts of interest tied to nascent digital-asset markets.
| Asset Type | Covered? | Notes |
|---|---|---|
| Bitcoin | Yes | Direct holdings prohibited |
| Altcoins / Memecoins | Yes | All tokens included |
| NFTs | Yes | Non-fungible tokens included |
| Stablecoins | Yes | Included despite fiat peg |
| Funds / Trusts / ETFs | Yes | Indirect exposure via funds covered |
| Derivatives | Yes | Options, futures tied to crypto included |
Why would Pennsylvania ban public officials from holding crypto?
The stated rationale in HB1812 is to prevent conflicts of interest and ensure public trust by removing potential financial incentives tied to policy decisions. Proponents cite the volatility and regulatory uncertainty of digital assets and aim to align ethics rules with rapidly evolving markets.
What penalties does HB1812 propose?
Noncompliance can trigger civil penalties up to $50,000. The bill references existing Ethics Act provisions that could convert certain violations into felonies, with imprisonment as a possible outcome for severe breaches. Enforcement would fall under state ethics authorities.
When will HB1812 advance in the legislature?
HB1812 is at the committee referral stage, assigned to the Committee on State Government. At this early point in the legislative process, passage is uncertain. Committee hearings, amendments, and floor votes are required before the bill can become law.
How does this compare to federal rules for members of Congress?
There are currently no blanket federal prohibitions on members of Congress holding cryptocurrencies, though disclosure and conflict-of-interest rules apply. Several members have publicly disclosed digital-asset holdings (for example: Michael Collins (R-GA), Barry Moore (R-AL), Jeffrey Jackson (D-NC)).
Frequently Asked Questions
What specifically is prohibited under HB1812?
HB1812 prohibits direct and indirect ownership of Bitcoin, altcoins, memecoins, NFTs, stablecoins, crypto-backed funds, trusts, derivatives, and ETFs by public officials and immediate family members.
How long after leaving office are officials restricted?
Officials would be prohibited from owning covered digital assets for one year after leaving public office, per the bill’s post-employment restriction designed to limit revolving-door conflicts.
Key Takeaways
- Scope: HB1812 covers a broad range of digital assets, including Bitcoin, NFTs, stablecoins, funds, derivatives, and ETFs.
- Timeline: Officials must divest within two months of taking office and remain barred for one year after leaving.
- Enforcement: Noncompliance can result in civil fines up to $50,000 and potential felony charges under the Ethics Act; the bill is currently in committee.
Conclusion
HB1812 would materially tighten Pennsylvania’s ethics regime by banning public officials and immediate family from holding Bitcoin and other digital assets and imposing divestment and post-employment restrictions. Stakeholders should monitor Committee on State Government activity and consult COINOTAG updates for developments and compliance guidance.
