Pennsylvania Lawmakers Push Strict Limits on Crypto Holdings for Public Officials

Pennsylvania’s legislature is weighing a bill that could sharply restrict how public officials and their families interact with digital assets.

The proposal, known as HB1812, was introduced on August 20 by Representative Ben Waxman with bipartisan co-sponsorship. It seeks to update the state’s ethics code to reflect the rise of cryptocurrencies and NFTs, imposing rules designed to prevent conflicts of interest.

Mandatory disclosure and divestment

If enacted, the measure would force officials to report any crypto or digital asset holdings worth more than $1,000. More importantly, they would need to sell off anything above that threshold within 90 days of the law taking effect. The rule also applies to assets held by immediate family members, a move aimed at closing loopholes around indirect ownership.

Transaction bans and penalties

The legislation goes beyond reporting requirements. During their term – and for a full year after leaving office — officials would be barred from trading crypto altogether. Families face similar restrictions during an official’s tenure.

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Violations carry steep consequences: penalties could include felony charges, up to $10,000 in fines, and as much as five years in prison. Civil infractions could result in additional fines as high as $50,000.

A response to growing adoption

Lawmakers argue that digital assets are becoming too common in investment portfolios to ignore. By imposing disclosure, divestment, and trading bans, Pennsylvania aims to set one of the nation’s toughest standards for public-sector ethics in the crypto era.

If the bill advances, it would take effect 60 days after passage, giving officials only a short window to adjust their holdings.