A new bill in Pennsylvania is sparking debate as it proposes to prohibit public officials and their relatives from trading in cryptocurrency, raising dialogue about political ethics and the impact of financial technology.
The HB1812 bill, introduced by Democratic lawmaker Ben Waxman, stipulates a ban on elected officials and their families participating in cryptocurrency transactions throughout their term, aiming to prevent conflicts of interest and the risk of corruption. If passed, the regulation will continue to apply for an additional year after the official leaves office.
Mr. Waxman stated that this bill is a response to the cryptocurrency-related activities of President Donald Trump, who is accused of exploiting his position for personal gain by promoting memecoins and other cryptocurrency projects.
According to him, the policies pushed by Trump could undermine the role of federal oversight, paving the way for personal financial interests. 'In Pennsylvania, no official should be allowed to exploit their position for personal enrichment,' Waxman emphasized.
The HB1812 bill proposes to amend Section 65 of the Pennsylvania Consolidated Statutes, establishing strict limits. Accordingly, officials and their relatives will be prohibited from conducting financial transactions related to cryptocurrency assets valued over $1,000, while being required to divest all holdings within 90 days of the law taking effect.
The proposed penalties are also intended to be strongly deterrent, including fines of up to $50,000 and a maximum prison sentence of 5 years for violations. This move reflects a trend of increasing regulation in the U.S., as some federal Democratic lawmakers are also pushing similar measures to limit politicians profiting from the still volatile and immature cryptocurrency market.
Waxman's proposal comes amid a deeply divided political landscape in Pennsylvania regarding cryptocurrency. Previously, a bill introduced by Republican lawmaker Mike Cabell, allowing the state treasurer to invest up to 10% of public funds in Bitcoin, was rejected by the House Finance Committee.