Ben Waxman, a Democrat from District 182 in Pennsylvania’s House of Representatives, has proposed legislation “to prevent elected officials from profiting off cryptocurrency while serving in office.”
Waxman introduced HB1812 on Wednesday with eight Democratic co-sponsors, citing what he described as “corruption” at the federal level linked to US President Donald Trump.
The Pennsylvania lawmaker accused Trump of gaining financially from crypto projects like his memecoin, Official Trump (TRUMP), and advocating for policies that “reduce federal oversight of crypto markets, shielding these schemes from examination.”
“In Pennsylvania, no public official should be permitted to use their position to enrich themselves through cryptocurrency ventures,” said Waxman. “That’s why I’m presenting legislation to prevent elected officials from profiting off cryptocurrency while in office, which includes launching, promoting, or trading coins where they have a personal financial stake.”
The allegations that Trump and his family have exploited his presidential campaign and position to profit from crypto initiatives have drawn criticism from various quarters at both state and federal levels. Several Democrats in the US Congress have suggested similar legislation to Waxman’s at the federal level, aiming to prohibit public officials, including the president, from issuing, sponsoring, or endorsing digital assets during their terms.
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Waxman’s bill, if enacted, would modify Title 65 of the Pennsylvania Consolidated Statutes to restrict public officials and their immediate families from engaging in “prohibited financial transactions” involving over $1,000 in crypto while in office and for one year after their terms end. It would also mandate that they divest from their crypto assets within 90 days of the bill’s enactment.
Possible penalties could include fines up to $50,000; however, certain violations of the law’s restricted activities could result in sentences up to five years in prison.
Pennsylvania rejects Bitcoin reserve plans
The proposed cryptocurrency ban emerged after Pennsylvania Representative Mike Cabell introduced a bill authorizing the treasurer to invest up to 10% of the state’s funds in Bitcoin (BTC). The BTC reserve proposal, presented in November, never passed out of the state’s House finance committee.
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