The legislation covers a broad spectrum of digital assets, including cryptocurrencies, memecoins, NFTs, and stablecoins, and would apply both during an official’s term and for one year after leaving office.
Under the proposal, public officials must divest any digital holdings within 90 days of assuming office or from the bill’s effective date. The prohibition would extend beyond direct ownership, applying to assets held through companies, trusts, funds, or financial products such as derivatives and ETFs.
Lawmakers must also disclose any digital asset holdings worth more than $1,000 in their annual financial statements.
Meanwhile, violations of the proposed law could trigger significant consequences.
Ethics breaches in Pennsylvania can carry felony charges, meaning that public officials who fail to comply could face civil penalties of up to $50,000 or even prison time.
Waxman’s proposal aligns with a growing effort among Democratic lawmakers to curb potential conflicts of interest tied to digital assets.
His bill sought to ban elected officials, spouses, and dependent children from issuing, promoting, or financially benefiting from digital securities and commodities, calling the measure “a way to make corruption criminal again.”
They have also continued highlighting risks tied to the industry, ranging from market volatility to the potential for misuse in illicit finance.
