Crypto Clash: Pennsylvania Lawmaker Moves to Shut the Door on Digital-Asset Profiteering by Public Officials

 

Your elected representatives diving into crypto deals on the side—and not just on the trading floor, but right from the corridors of power. Sounds shady, right? That’s exactly what Pennsylvania Representative Ben Waxman is aiming to stop.

Representative Waxman (Democrat, District 182) has introduced House Bill 1812, a bold move designed to cut ties between public office and personal crypto gain. The legislation seeks to ban lawmakers—and their families—from launching, promoting, or trading cryptocurrencies in which they hold a financial interest. The intent is clear: no profiteering.

What’s in the Bill?

• Whom it affects: All elected officials in Pennsylvania and their immediate family members.

• What’s prohibited: Launching, promoting, or trading in any cryptocurrency where they have personal financial stakes—during their term and extending for 12 months after leaving office.

• Divestment requirement: Should the bill become law, affected individuals must ensure they divest from any crypto holdings within 90 days of its enactment.

• Consequences for violations: Penalties could be steep—fines up to $50,000 and even prison terms of up to five years, depending on the violation 

What Sparked the Proposal?

Waxman specifically points to the case of former President Trump and the crypto ventures associated with him, such as the “Official Trump” memecoin. Waxman denounces these efforts and broader attempts to loosen crypto regulation as “corruption,” arguing that they allow insiders to profit without sufficient oversight 

This kind of reckless entanglement of politics and personal profit isn’t just seen in one state. At the federal level, some Democratic lawmakers have already proposed similar bills—aimed at barring presidents and other officials from directly issuing, backing, or endorsing digital assets while in office 

A Quick Comparison:

Aspect	Pennsylvania’s Proposed Law (HB 1812)	Federal-Level Measures (proposed)
Scope	State-level—affects Pennsylvania public officials and their families	National—targets presidents and federal officials
Prohibited Activities	Launching, promoting, or trading crypto with personal interest	Issuing, sponsoring, or endorsing digital assets
Divestment Deadline	90 days post-enactment	Varies by specific proposal
Penalties	Up to $50,000 in fines; up to 5 years in prison	Yet to be determined

Why It Matters:

Pennsylvanians—and indeed citizens everywhere—deserve to trust that their public servants act in the public interest, not their own wallets. By attempting to close the crypto “revolving door,” Waxman’s bill proposes a framework that champions transparency, integrity, and accountability.