A new bill, HB1812, has been introduced in the Pennsylvania House of Representatives that could significantly restrict public officials and their families from engaging in cryptocurrency transactions. Sponsored by Rep. Ben Waxman, with seven co-sponsors, the bill aims to amend Title 65 of the Pennsylvania Consolidated Statutes to include stricter ethics standards for public officials regarding digital assets. The bill has been referred to the State Government Committee.

HB1812 proposes a ban on public officials and their immediate family members from owning or transacting in a wide array of digital assets, including Bitcoin, altcoins, memecoins, NFTs, stablecoins, crypto-backed funds, derivatives, and ETFs. The legislation defines "digital assets" broadly to encompass various forms of digital currency and tokens. This prohibition extends to direct and indirect ownership, covering investments made through funds or trusts.

Under the proposed law, public officials would be required to disclose any financial interest in digital assets exceeding $1,000 in their statements of financial interests. Furthermore, officials holding digital assets above this threshold would need to divest their holdings within 90 days of the bill taking effect. These restrictions would apply not only during their term in office but also for one year after leaving their position.

Violations of the proposed law could result in significant penalties. Public officials who fail to comply with the divestment and disclosure requirements could face civil penalties of up to $50,000. Moreover, non-compliance could potentially lead to felony charges under the state's Ethics Act, including possible jail time.

Waxman has stated that the bill aims to prevent public officials from using their office to enrich themselves through cryptocurrency schemes and to ensure that personal financial interests do not influence policy decisions. He pointed to instances of public figures, like Donald Trump, allegedly benefiting from crypto projects, as examples of why such legislation is necessary. The bill seeks to prevent lawmakers and their families from "launching, promoting, or trading in coins where they hold a personal financial interest".

HB1812 is part of a growing trend of legislative efforts at both the state and federal levels to regulate public officials' involvement with digital assets. Congressman Ritchie Torres proposed the “Stop Presidential Profiteering from Digital Assets Act” in May 2025, and Senator Adam Schiff introduced the COIN Act in June 2025. These proposed laws, along with the federal MEME Act introduced in February 2025, reflect increasing concerns about potential conflicts of interest as digital assets gain mainstream adoption.

While proponents argue that the bill is essential for maintaining public trust and preventing conflicts of interest, critics raise concerns about potential overreach. They suggest that such measures could unduly restrict legitimate investment rights and set a problematic precedent for government intrusion into personal finance.

It is important to note that HB1812 is currently in the committee referral stage and has been assigned to the Committee on State Government. The bill must go through committee hearings, potential amendments, and a full legislative vote before it can become law. The timeline for any final vote is currently unknown.