On August 20, a significant legislative move took place in Pennsylvania as Democratic Representative Ben Waxman, along with eight co-sponsors, introduced a bill aimed at addressing the intersection of public service and cryptocurrency. This initiative, labeled House Bill 1812, intends to implement stricter regulations surrounding public officials’ involvement in digital currencies.

This bill proposes to prevent officials from profiting off of cryptocurrency during their time in office, enforced by stringent penalties for any breaches of the law.

Scope of the Legislation

Should HB1812 be passed, changes would be seen in Title 65 of the Pennsylvania Consolidated Statutes. Specifically, it would restrict public officials and their immediate families from conducting any cryptocurrency transactions exceeding $1,000 while serving in office and for a period of one year post-service.

Moreover, any officials currently holding cryptocurrencies would be compelled to divest their assets within 90 days following the law’s enactment. Failure to comply could lead to penalties of up to $50,000 or, in severe cases, imprisonment for up to five years.

At this moment, the bill awaits a committee review in the Pennsylvania House before it can proceed to a full vote on the floor.

BREAKING: Pennsylvania aims to prohibit public officials from crypto ownership pending bill approval.

Offenders might watch out for hefty fines or possible incarceration. pic.twitter.com/EUUp7GuqaL

— Bitcoin Archive (@BTC_Archive) August 21, 2025

The Context of Proposed Legislation

Waxman has indicated that this legislative proposal is a direct response to notable instances of cryptocurrency associations at the federal level, particularly highlighting concern over certain projects associated with US political figures, including former President Donald Trump. Waxman points to the ethical implications of Trump’s ventures, notably the emergence of memecoins linked to his brand and other financial projects.

Critics among Waxman’s supporters argue that such ventures create a dubious overlap between the duties of public service and personal financial gain. Allegations have surfaced that certain tokens related to Trump have led investors to significant financial losses, further amplifying the call for measurable regulatory frameworks.

Federal Movements Resonating State Legislation

In tandem with state-level initiatives, proposals exist in Congress that mirror Pennsylvania’s efforts, namely the Stop TRUMP in Crypto Act and the COIN Act. These legislative proposals aim to establish prohibitions against the president, vice president, and members of Congress from engaging in the issuance or promotion of digital tokens during their terms.

Representative Maxine Waters has expressed concerns that tokens associated with political figures might be exploited by foreign interests to manipulate markets, further substantiating the case for regulatory frameworks surrounding digital assets and public service integrity.

Perspectives on HB1812

Proponents of HB1812 assert that this bill serves as a necessary ethical guideline, ensuring that no elected official stands to gain financially from crypto markets while fulfilling their public responsibilities.

Supporters emphasize the sector’s unpredictability and minimal regulation, rendering it subject to potential ethical breaches.

Conversely, critics may argue that the bill is excessively expansive or fear it could deter public officials from engaging in legitimate investments. Nevertheless, formal responses from Republican lawmakers concerning the bill are not yet available.

Featured image by Unsplash, chart data sourced from TradingView.