The legislation also prohibits officials from conducting crypto transactions during their term and for one year after leaving office.
The bill, HB1812, amends Title 65 of the Pennsylvania Consolidated Statutes regarding ethics standards for public officials, and was referred to the State Government Committee the same day.
It introduces a definition of “digital assets” that encompasses various forms of digital currency and tokens, including crypto and NFTs.
The legislation also prohibits public officials’ immediate families from engaging in certain financial transactions during the politician’s term and for one year after leaving office.
Rep. Ben Waxman sponsors HB1812 with seven other co-sponsors, including Freeman, Giral, Pielli, Probst, Hill-Evans, Sanchez, Otten, and Briggs.
Public officials must disclose any financial interest in digital assets exceeding $1,000 in their statements of financial interests. Officials who already possess such interests must divest their holdings within 90 days after the bill takes effect.
The disclosure requirements apply to both direct holdings and investments through immediate family members. The $1,000 threshold aligns with existing financial disclosure standards for other investment categories.
HB1812 classifies violations related to digital assets as felonies with fines up to $10,000 or imprisonment for up to five years. Violations of other restricted activities provisions incur civil penalties of up to $50,000.
The legislation establishes a 60-day implementation period following passage. The bill addresses digital asset ethics in public service as crypto becomes more prevalent in investment portfolios.
The Pennsylvania legislation aligns with the 2025 federal efforts to address officials’ crypto activities.
These concurrent legislative efforts demonstrate growing bipartisan concern about potential conflicts of interest as digital assets become mainstream investment vehicles for both private citizens and public officials.
