The bill pushed by the representative included a ban on lawmakers and their families from “launching, promoting, or trading in coins where they hold a personal financial interest.”
Ben Waxman, a Democrat representing District 182 in Pennsylvania’s House of Representatives, has introduced legislation “to prohibit elected officials from profiting off cryptocurrency while in office.”
Waxman introduced HB1812 on Wednesday with eight Democratic co-sponsors in response to what he called “corruption” perpetuated at the federal level by US President Donald Trump.
The Pennsylvania lawmaker accused Trump of financially benefiting from crypto projects like his memecoin, Official Trump (TRUMP), and pushing policies to “roll back federal oversight of crypto markets, shielding these schemes from scrutiny.”
“In Pennsylvania, no public official should be allowed to use their office to enrich themselves through cryptocurrency schemes,” said Waxman. “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.”
The claims that Trump and his family have used his presidential campaign and office to personally profit from crypto ventures have prompted pushback from many at the state and federal levels. Several Democrats in the US Congress have proposed legislation similar to Waxman’s in the federal government to ban public officials, including the president, from issuing, sponsoring, or endorsing digital assets while in office.
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Waxman’s bill, if passed, would amend Title 65 of the Pennsylvania Consolidated Statutes to bar public officials and their immediate families from engaging in “prohibited financial transactions” involving more than $1,000 in crypto while in office and for a year after finishing their terms. It would also require them to divest from their crypto holdings within 90 days of the bill becoming law.
Potential penalties included fees up to $50,000, though some violations of restricted activities under the law could mean up to five years in prison.
Pennsylvania rejects Bitcoin reserve plans
The proposed crypto ban followed Pennsylvania Representative Mike Cabell’s introduction of a bill empowering the treasurer to invest up to 10% of the state’s funds in Bitcoin (BTC). The BTC reserve plan, introduced in November, never left the state’s House finance committee.
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