Pennsylvania Democrats Introduce Bill to Ban Crypto Profits for Elected Officials

Democrat Ben Waxman from Pennsylvania has introduced House Bill 1812, aimed at prohibiting elected officials from profiting from cryptocurrency while in office. This initiative arises from concerns about ethical standards, particularly regarding former President Donald Trump’s involvement in the crypto space.

Key Takeaways

House Bill 1812: A proposed law in Pennsylvania to prevent elected officials from making profits through cryptocurrency while serving.
Corruption Concerns: The bill is a response to perceived ethical breaches linked to former President Trump’s cryptocurrency ventures.
Regulations: If passed, public officials could not engage in crypto transactions over $1,000 during and one year after their term, with existing holdings required to be sold within 90 days.
Consequences for Violation: Lawmakers could face fines of up to $50,000 and prison sentences for significant breaches.
Wider Legislative Context: Similar proposals are under consideration at the federal level, including initiatives targeting senior government officials.

Pennsylvania Democrats propose crypto ban targeting lawmakers in office

Main Content

A Democratic lawmaker in Pennsylvania has recently proposed a bill that seeks to ban elected officials from benefiting financially from cryptocurrency while they hold office. Ben Waxman, representing District 182, introduced House Bill 1812 on August 20, with the backing of eight additional Democratic co-sponsors. The aim of this legislation is to prevent “elected officials from profiting off cryptocurrency while in office.”

The proposal is a direct response to what Waxman perceives as corruption occurring at the federal level, particularly highlighting former President Donald Trump’s increasing engagement with the cryptocurrency market. Waxman believes that Trump is leveraging his position to promote his financial interests through initiatives like the Official Trump memecoin and is influencing federal regulations to “reduce oversight of crypto markets.”

Waxman emphasizes that no public servant should be able to enrich themselves through cryptocurrency schemes while serving the public. This sentiment reflects the broader concerns among Democrats regarding Trump’s financial entanglements. Critics argue that Trump’s involvement with cryptocurrencies creates conflicts of interest and blurs ethical boundaries. His family has been associated with various high-profile projects, including World Liberty Financial and several memecoin launches, leading to accusations that he is using his presidential influence to attract investors. Reports suggest that the Official Trump token resulted in significant losses for investors, heightening calls for stricter regulations both at the state and federal levels.

Waxman and his co-sponsors maintain that the bill serves as a crucial measure to uphold the integrity of public office. They argue that elected officials should be held to a higher standard, particularly in financial matters where personal gain could influence decision-making. By focusing on cryptocurrency, Waxman indicates that this sector is especially prone to exploitation, characterized by volatility, light regulation, and its appeal to political figures looking to profit from market trends.

If House Bill 1812 is enacted, it will amend Title 65 of the Pennsylvania Consolidated Statutes to impose stringent rules that prevent public officials and their families from participating directly in the cryptocurrency market. Key elements of the bill include prohibiting officials from engaging in any crypto-related financial transactions exceeding $1,000 while in office and for a period of one year upon leaving office. Additionally, officials would be required to divest any existing cryptocurrency holdings within 90 days of the law's implementation.

Violations of this proposed law could result in substantial fines of up to $50,000. In more serious cases, individuals could face prison sentences of up to five years.

Currently, the bill is under consideration in the Pennsylvania House of Representatives and must pass committee scrutiny before it can progress to a vote by the full chamber. Notably, Waxman’s legislation mirrors initiatives that have been proposed by Democratic members of Congress in Washington, such as the Stop TRUMP in Crypto Act and the COIN Act, which seek to prevent high-ranking officials from issuing or endorsing tokens while in office.

For several months, Democrats have actively criticized Trump’s cryptocurrency ventures, which encompass projects like the MELANIA and Official Trump tokens, American Bitcoin mining operations, and stablecoin initiatives under World Liberty Financial. Prominent figures, including Rep. Maxine Waters, have continuously asserted that Trump’s actions resemble a “pay-to-play scheme,” cautioning that foreign actors might exploit cryptocurrency tokens associated with him.