Pennsylvania lawmaker Ben Waxman, a Democrat, has put forward a bill that aims to restrict public officials from owning or dealing in digital assets while serving in office. The proposal, known as House Bill 1812 (HB1812), looks to amend the state’s ethics and financial disclosure laws and extend those limitations to the immediate families of officials.
The scope of the legislation encompasses a wide range of digital assets, including cryptocurrencies, memecoins, NFTs, and stablecoins. These restrictions would be applicable both during an official’s term and for a year following their departure from office.
Under the terms of the bill, public officials must divest any digital holdings within 90 days of assuming office or from the effective date of the bill. The prohibition extends beyond direct ownership and includes assets held through entities such as companies, trusts, funds, or financial products like derivatives and ETFs.
Furthermore, lawmakers are required to disclose any digital asset holdings exceeding $1,000 in their annual financial statements. Violations of the proposed law could lead to severe consequences, as ethics breaches in Pennsylvania can result in felony charges. Non-compliance could result in civil penalties of up to $50,000 or potential imprisonment.
According to the Bitcoin Laws platform, HB1812 has only passed the initial committee stage, with four more steps remaining before it could potentially become law.
This initiative by Waxman is part of a broader effort among Democratic lawmakers to address potential conflicts of interest related to digital assets. Earlier this year, Congressman Sam Liccardo introduced similar legislation aimed at preventing government officials and their families from profiting from cryptocurrencies, including memecoins. Liccardo’s bill sought to prohibit elected officials, spouses, and dependent children from engaging in activities that could lead to financial gain from digital securities and commodities.
In recent years, the Democratic Party has taken a cautious stance towards cryptocurrencies. Prominent figures such as Senator Elizabeth Warren and Representative Maxine Waters have expressed concerns about public officials’ involvement in digital asset markets, citing ethical and legal implications. They have also emphasized the risks associated with the industry, such as market volatility and the potential for misuse in illicit financial activities.
Overall, Waxman’s bill represents a concerted effort to address potential conflicts of interest and uphold ethical standards among public officials in Pennsylvania. This ongoing debate underscores the complex intersection of cryptocurrency, governance, and accountability in the modern political landscape.