Pennsylvania Considers Ban on Public Officials Trading Crypto
Pennsylvania lawmakers are considering a new bill that would prohibit elected officials from engaging in cryptocurrency trading while in office. Introduced by Representative Ben Waxman, the legislation aims to prevent public officials from enriching themselves through digital asset schemes, drawing parallels to alleged actions at the federal level.
Key Takeaways
- A Pennsylvania bill seeks to ban public officials from trading cryptocurrency.
- The legislation targets potential conflicts of interest and self-enrichment.
- Penalties for violations could include significant fines and imprisonment.
Proposed Legislation Targets Crypto Conflicts of Interest
Representative Ben Waxman, a Democrat from Pennsylvania's 182nd District, has put forth House Bill 1812, which aims to prevent elected officials from profiting from cryptocurrency investments during their tenure. Waxman stated that the bill is a response to what he perceives as corruption at the federal level, specifically citing allegations that former President Donald Trump benefited financially from cryptocurrency projects and influenced regulatory oversight.
"In Pennsylvania, no public official should be allowed to use their office to enrich themselves through cryptocurrency schemes," Waxman declared. "That’s why I’m introducing legislation to prohibit elected officials from profiting off cryptocurrency while in office. This includes launching, promoting, or trading in coins where they hold a personal financial interest."
Scope and Penalties of the Bill
If enacted, Waxman's bill would amend Title 65 of the Pennsylvania Consolidated Statutes. It would bar public officials and their immediate family members from engaging in cryptocurrency transactions exceeding $1,000 while in office and for one year after leaving public service. Furthermore, officials would be required to divest their crypto holdings within 90 days of the bill's enactment.
Violations could result in penalties of up to $50,000 in fines. More serious breaches of restricted activities under the proposed law might even carry a prison sentence of up to five years.
Broader Context of Crypto Regulation in Pennsylvania
This proposed ban on crypto trading for public officials comes shortly after a separate initiative in Pennsylvania. Earlier, Representative Mike Cabell had introduced a bill that would have allowed the state treasurer to invest up to 10% of the state's funds in Bitcoin. However, that proposal did not advance beyond the state's House finance committee.