A Pennsylvania Democratic lawmaker has introduced legislation to prevent elected officials from profiting from cryptocurrency during their time in office.
Summary
- Pennsylvania Representative Ben Waxman proposed HB1812 to prohibit elected officials from profiting from cryptocurrency while in office.
- HB1812 mandates lawmakers to divest their current cryptocurrency investments.
Democrat Ben Waxman from District 182, along with eight other Democratic co-sponsors, introduced House Bill 1812 on August 20 to prohibit “elected officials from profiting off cryptocurrency while in office.”
Waxman created HB1812 in response to perceived corruption at the federal level, specifically criticizing President Donald Trump’s increasing involvement in cryptocurrency.
According to Waxman, Trump is leveraging the presidency to promote his financial interests, such as the Official Trump memecoin, while influencing federal regulations to ease oversight of crypto markets.
Waxman stated that no public servant should “enrich themselves through cryptocurrency schemes” while in office, highlighting broader Democratic concerns regarding Trump’s financial relationships. Democrats argue that Trump’s crypto activities blur ethical boundaries and could lead to conflicts of interest.
Trump and his family have engaged in several notable projects, including World Liberty Financial and various memecoin initiatives, which critics claim exploit his presidential influence to attract investors. Allegations suggesting that the Official Trump token caused significant investor losses have intensified calls for regulatory measures at both the state and federal levels.
Waxman and his co-sponsors believe the bill serves as a crucial measure to uphold the integrity of public office, insisting that elected officials must adhere to higher ethical standards, particularly concerning financial incentives that could sway policy decisions.
By focusing on cryptocurrency, Waxman presents the sector as particularly susceptible to exploitation, emphasizing its volatility, minimal regulation, and appeal to political figures eager to take advantage of market trends.
What is HB1812?
If passed, HB1812 would amend Title 65 of the Pennsylvania Consolidated Statutes, implementing strict regulations that prevent public officials and their families from engaging in the cryptocurrency market.
Key elements of the bill would include prohibiting officials from participating in crypto-related financial transactions exceeding $1,000 while in office and for a year post-tenure.
Additionally, they would be required to divest any current holdings within 90 days of the law’s enactment.
Violations could result in fines up to $50,000 and, in severe cases, imprisonment for up to five years.
The bill is now awaiting deliberation in the Pennsylvania House and must undergo committee scrutiny before a full floor vote.
Democrats push back
Waxman’s proposals closely mirror legislation that Democratic members of Congress have presented in Washington, including the Stop TRUMP in Crypto Act and the COIN Act, which aim to ban the president, vice president, legislators, and their families from promoting or issuing tokens while in office.
For several months, Democrats have criticized Trump’s cryptocurrency ventures, which encompass projects like the MELANIA and Official Trump tokens, American Bitcoin mining initiatives, and stablecoin endeavors related to World Liberty Financial.
Figures like Rep. Maxine Waters have accused Trump’s actions of resembling a “pay-to-play scheme,” cautioning that foreign entities could take advantage of these tokens associated with him.
