A significant legislative effort is underway in Pennsylvania to address potential conflicts of interest arising from public officials' involvement with digital assets. A proposed bill aims to impose stringent restrictions, ensuring transparency and accountability in the rapidly evolving digital finance landscape.
Pennsylvania's Sweeping Crypto Prohibition
Pennsylvania House Bill 1812 (HB1812), introduced by Democratic lawmaker Ben Waxman, seeks to drastically alter the state's ethics and financial disclosure laws. This comprehensive proposal aims to prevent public officials and their immediate families from owning or transacting in a wide array of digital assets, including cryptocurrencies, memecoins, NFTs, and stablecoins. The prohibition extends beyond direct ownership to include holdings through companies, trusts, funds, and financial products like derivatives and ETFs. Officials would be mandated to divest any existing digital assets within 90 days of taking office or the bill's effective date, and these restrictions would remain in place for one year after leaving public service. Furthermore, any digital asset holdings exceeding $1,000 would require annual disclosure on financial statements.
Severe Penalties and a Broader Trend
Non-compliance with HB1812 carries substantial consequences, with potential felony charges, civil penalties up to $50,000, and even prison time for those found in violation. Currently, the bill has passed its initial committee stage, marking an early step in its journey through the legislative process. This move by Pennsylvania aligns with a growing national push by Democratic lawmakers, such as Congressman Sam Liccardo, who advocate for similar restrictions to prevent government officials and their families from financially benefiting from digital assets. These initiatives highlight ongoing concerns within the Democratic party regarding ethical implications, market volatility, and the potential for digital assets to be misused in illicit financial activities.
