Democrat Ben Waxman, a Pennsylvania lawmaker, has proposed a bill aimed at prohibiting public officials from owning or dealing in digital assets while in office.
This legislation, referred to as House Bill 1812 (HB1812), seeks to modify the state’s ethics and financial disclosure regulations, extending these restrictions to the immediate family members of officials.
It encompasses a wide range of digital assets, such as cryptocurrencies, memecoins, NFTs, and stablecoins, with the rules applying both during an official’s term and for one year post-tenure.
The bill mandates that public officials divest any digital holdings within 90 days of taking office or from the bill’s effective date. The ban would extend beyond direct ownership to assets held through companies, trusts, funds, or financial instruments like derivatives and ETFs.
Furthermore, lawmakers are required to disclose any digital asset holdings exceeding $1,000 in their annual financial filings.
Violations of this proposed law could have serious ramifications.
In Pennsylvania, ethics violations can result in felony charges, meaning public officials who fail to comply could face civil fines of up to $50,000 or even imprisonment.
According to the crypto legislation monitoring platform Bitcoin Laws, HB1812 has only passed the initial committee phase, being the first of six steps needed for it to become legislation.
Democrats intensify efforts to mitigate digital asset conflicts
Waxman’s initiative aligns with a broader movement among Democratic legislators to address potential conflicts of interest associated with digital assets.
This year, Congressman Sam Liccardo also introduced legislation targeting the financial benefits of cryptocurrencies for government officials and their families, including memecoins.
His bill aimed to prohibit elected officials, their spouses, and dependent children from issuing, promoting, or financially profiting from digital securities and commodities, asserting the measure as “a means to make corruption criminal again.”
Historically, the Democratic Party has maintained a cautious approach toward the cryptocurrency sector.
Notable figures like Senator Elizabeth Warren and Representative Maxine Waters have expressed concerns that public officials’ involvement in digital asset markets, exemplified by individuals such as President Donald Trump, raises significant ethical and legal issues.
They have continuously emphasized the risks associated with the industry, ranging from market instability to the potential for illegal financial activity.
