Pennsylvania lawmaker proposes ban on public officials trading cryptocurrency

Pennsylvania state Representative Ben Waxman (D) has introduced a bill, HB1812, that would bar elected officials from profiting from cryptocurrency transactions or promotions while they hold office.

Waxman said the measure is aimed at stopping public servants from using their position to benefit from crypto projects. The proposal specifically targets activities such as launching, promoting, or trading tokens in which an official has a personal financial interest, and Waxman cited recent high‑profile federal controversies over elected figures’ ties to digital‑asset ventures as part of the rationale for the law.

Under the draft legislation, the state code (Title 65 of the Pennsylvania Consolidated Statutes) would be amended to prohibit public officials and their immediate family members from engaging in “prohibited financial transactions” involving more than $1,000 in crypto while in office and for one year after leaving office. The bill also would require divestment of covered crypto holdings within 90 days of the law taking effect.

Penalties outlined in the proposal include civil fines—potentially reaching as high as $50,000—and, for certain restricted activities, criminal exposure that could carry sentences of up to five years in prison.

The move in Pennsylvania follows similar legislative efforts at the federal level from some Democrats seeking to curb elected officials’ ability to issue, endorse, or profit from digital assets; proponents point to allegations that national politicians and their families have financially benefited from crypto projects as a driving concern. The bill was filed alongside eight Democratic co‑sponsors.

Coinciding coverage notes that the proposal comes amid other state‑level crypto debates in Pennsylvania, including a separate, earlier measure to let the state treasurer allocate up to 10% of state funds to Bitcoin that stalled in committee.