Pennsylvania to ban government officials from trading cryptocurrencies

Key points:

• Ben Waxman introduced a bill prohibiting elected officials from profiting from cryptocurrencies.
• Waxman accused Trump of receiving financial benefits from crypto projects.
• Possible penalties for non-compliance with the law include fines of up to $50 000.

Democratic Party member Ben Waxman, representing the 182nd district in the Pennsylvania House of Representatives, has introduced a bill prohibiting elected officials from profiting from cryptocurrency while in office. He introduced HB1812 with eight Democratic co-sponsors in response to what he called “corruption” entrenched at the federal level by US President Donald Trump.

Reasons for introducing the law

Waxman accused Trump of profiting from crypto projects, such as his Official Trump meme coin, and promoting policies aimed at weakening federal oversight of cryptocurrency markets and protecting these schemes from scrutiny. The official added:

“In Pennsylvania, no public official should be allowed to use their office to enrich themselves through cryptocurrency schemes. That’s why I’m introducing legislation to prohibit elected officials from profiting off cryptocurrency while in office. This includes launching, promoting, or trading in coins where they hold a personal financial interest.”

Similar proposals from authorities

Allegations that Trump and his family used his presidential campaign and office for personal gain from crypto projects have sparked resistance from many at the state and federal levels. Several Democrats in the US Congress have proposed a bill similar to Waxman’s bill in the federal government, prohibiting public officials, including the president, from issuing, sponsoring, or supporting digital assets while in office.

What will HB1812 change?

If Waxman’s bill is passed, it will amend Section 65 of the Pennsylvania Code, prohibiting public officials and their immediate family members from engaging in financial transactions involving cryptocurrency worth more than $1000 while in office. This also applies for one year after leaving office. It will also require officials to divest themselves of their cryptocurrency assets within 90 days of the bill taking effect.

Violations will result in fines of up to $50 000 and, in some cases, imprisonment for up to five years