Pennsylvania lawmakers are pushing for a new bill that prohibits civil servants from holding or trading digital assets, including Bitcoin.
Proposal, House Bill 1812 (HB1812) was introduced by Representative Ben Waxman, a Democrat representing Philadelphia’s 182nd District, and was co-hosted by several other lawmakers.
It aims to close what Waxmen and others call “ethical loopholes” that allow elected officials to use their influence to personally benefit from the growing digital asset industry.
If passed, HB1812 requires all Pennsylvania civil servants to disclose digital assets holdings in excess of $1,000 and sell any amounts that fall within 90 days of the law’s enactment. This applies not only to the authorities themselves, but also to their immediate family.
The law also prohibits the conduct of digital asset transactions during your duties one year after taking office.
This includes direct ownership of coins such as Bitcoin, investments in funds or trusts holding digital assets, and even exposure through exchange sales funds (ETFs) or derivatives.
The bill broadly defines “digital assets” and includes cryptocurrencies, memoirs, stubcoins, inappropriate tokens (NFTs), and other blockchain-based tokens.
Violation of the law can be serious. The bill classifies certain offences as fines of up to $10,000 or felony carrying prison time up to five years. Other restricted activities can result in civil penalties of up to $50,000.
Waxman pointed to President Donald Trump, saying he was motivated in part by “corruption” at the federal level.
Pennsylvania lawmakers accused Trump of using his office to promote and profit from digital asset projects, including tokens that include his name.
“In Pennsylvania, it must not be permitted to use civil servants to enrich themselves through cryptocurrency schemes.” Waxman said when introducing the bill.
The bill reflects growing national concerns about conflicts of interest when politicians are engaged in digital assets.
At the federal level, Rep. Richie Torres introduced “stop the president from digital assets,” and Sen. Adam Schiff advocated the Coin Act.
Supporters of the Pennsylvania bill say HB1812 will increase public confidence in the government. By requiring staff to disclose and sell digital assets, they argue, the bill will reduce the likelihood of backroom transactions or policies written to benefit politicians’ private investments.
The bill is modelled on Pennsylvania’s existing financial disclosure law, which requires reporting of certain assets and investments. The $1,000 reporting threshold for digital assets was chosen to match these standards.
Waxman said it’s not about stopping people from owning Bitcoin, but about preventing conflicts of interest among civil servants.
The bill has bipartisan support in the state legislature, but critics say it’s difficult to enforce. Tracking the holdings of civil servants is not always easy as digital assets are decentralized and pseudonyms exist.
