Pennsylvania crypto bill HB1812 would ban public officials and their immediate families from profiting from cryptocurrencies while in office, require divestment within 90 days, and set penalties up to $50,000 or imprisonment, aligning state rules with national conflict-of-interest concerns.
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Pennsylvania bill HB1812 bans public officials from profiting from cryptocurrencies and demands 90-day divestment.
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Violations may trigger fines up to $50,000 and possible imprisonment; the proposal has eight Democratic co-sponsors.
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Short-term market impact appears limited; the bill intensifies scrutiny on digital asset holdings and public-sector conflicts of interest.
Pennsylvania crypto bill HB1812 bans officials profiting from crypto, mandates 90-day divestment, and imposes fines up to $50,000 — read implications and next steps.
What is Pennsylvania crypto bill HB1812?
Pennsylvania crypto bill HB1812 is proposed legislation that would prohibit public officials and their immediate family members from profiting from cryptocurrencies while in office. The bill requires divestment of covered digital assets within 90 days and establishes penalties — including fines and possible imprisonment — for noncompliance.
How does HB1812 define prohibited activity and who must divest?
HB1812 targets elected officials, appointed public officers, and their immediate family members. It prohibits launching, promoting, trading, or otherwise profiting from cryptocurrencies where a personal financial interest exists. The bill requires divestment within 90 days of enactment for covered assets and mandates reporting to ethics authorities for transparency.
Why did Representative Ben Waxman sponsor HB1812?
Representative Ben Waxman says the bill addresses conflicts of interest where public office could be used to enrich officials via cryptocurrencies. He stated that elected officials should not be permitted to use their positions to profit from crypto schemes and that ethical enforcement must be strengthened at the state level.
What penalties and enforcement mechanisms does HB1812 propose?
HB1812 proposes civil penalties up to $50,000 for violations and allows for criminal penalties in certain cases. The bill mandates disclosure and swift divestment, with enforcement managed by state ethics authorities. It also includes provisions for audits and reporting to ensure compliance.
Frequently Asked Questions
Will HB1812 force immediate sale of crypto holdings?
Yes. The bill requires divestment of covered digital assets within 90 days of the rule taking effect. Officials must disclose holdings and complete divestment to avoid penalties under the law.
Does HB1812 apply to NFTs and other digital tokens?
HB1812 covers a broad range of digital assets, including cryptocurrencies and NFTs, when those assets create a financial interest tied to official actions. The text is written to capture tokens that could present conflicts of interest.
How might HB1812 affect candidate pools and market behavior?
The bill may deter candidates with significant crypto investments from seeking office or prompt divestment before declaring candidacy. Market effects are expected to be modest unless multiple officials hold concentrated positions in the same token, which could create localized selling pressure.
How will HB1812 be enforced and what does compliance look like?
Enforcement rests with state ethics officials who will review disclosures, verify divestment, and levy penalties for noncompliance. Compliance requires timely reporting, documented divestment transactions, and potential audits. Officials are expected to retain records demonstrating completion of divestment within the 90-day window.
How to divest under HB1812 (step-by-step)
Public officials and advisors should follow these steps to comply:
- Review all personal and family-held digital asset accounts for reportable holdings.
- File a disclosure with state ethics authorities listing implicated assets and positions.
- Execute divestment transactions or transfer holdings to a qualified blind trust within 90 days.
- Retain transaction records and submit confirmation to the ethics office.
- Consult legal counsel or ethics officials for complex token types like NFTs or decentralized holdings.
Summary table: Penalties and timelines (HB1812 vs typical federal proposals)
| Measure | HB1812 | Typical Federal Proposal |
|---|---|---|
| Divestment window | 90 days | 30–120 days (varies) |
| Max civil fine | $50,000 | $10,000–$50,000 (varies) |
| Criminal penalties | Possible in select violations | Possible depending on statute |
| Scope | State officials + immediate family | Federal officials + appointed staff |
Key Takeaways
- Pennsylvania targets public officials’ crypto holdings: HB1812 would ban profiting from crypto and mandate divestment within 90 days.
- Penalties are significant: Violations may attract fines up to $50,000 and potential criminal consequences.
- Policy aligns with national concerns: The bill mirrors wider conflict-of-interest debates and could influence candidate behavior and disclosure norms.
Conclusion
HB1812 positions Pennsylvania at the forefront of state-level rules limiting public officials’ involvement in cryptocurrencies. The bill emphasizes divestment, transparency, and enforcement to prevent conflicts of interest. Stakeholders should monitor legislative progress and prepare compliance plans. COINOTAG will continue to report updates and implications for officials and markets.
