A group of Pennsylvania Democrats has introduced legislation aimed at barring elected officials from personally profiting off cryptocurrency while in office, citing ethical concerns over political figures’ growing involvement in the digital asset space.
House Bill 1812, sponsored by Rep. Ben Waxman of District 182 and eight Democratic colleagues, was introduced on August 20. The measure seeks to amend state ethics law by prohibiting lawmakers and their families from holding or trading cryptocurrency during their term and for one year after leaving office.
If passed, officials would be required to divest any existing crypto holdings within 90 days. The bill also sets penalties for violations, including fines of up to $50,000 and prison terms of up to five years in the most serious cases.
A response to Trump’s crypto ties
In introducing the legislation, Waxman pointed directly to President Donald Trump’s expanding footprint in the crypto sector. He accused Trump of using the White House to advance personal financial interests while pushing federal policies to relax oversight of digital assets.
“No public servant should enrich themselves through cryptocurrency schemes while in office,” Waxman said, echoing broader Democratic concerns that Trump’s ventures—including the Official Trump memecoin, World Liberty Financial, and other token launches—blur ethical lines and invite conflicts of interest.
Critics of these projects argue they exploit Trump’s political influence to attract investors, with some alleging that the Official Trump token alone wiped out billions in investor money.
What the bill would do
HB1812 specifically restricts lawmakers and their families from engaging in crypto-related transactions worth more than $1,000 while serving in office. The restrictions also extend to one year post-office to limit potential conflicts of interest.
Violations could bring stiff penalties, and the bill emphasizes transparency as a safeguard for protecting public trust. It is currently awaiting committee review in the Pennsylvania House before moving to a full vote.
Part of a broader Democratic push
The Pennsylvania proposal mirrors efforts in Washington, where congressional Democrats have advanced measures such as the Stop TRUMP in Crypto Act and the COIN Act. These bills would prohibit presidents, vice presidents, and members of Congress from issuing or promoting tokens while in office.
Figures including Rep. Maxine Waters have warned that Trump’s crypto ventures could amount to “pay-to-play schemes,” raising national security concerns about foreign influence in projects tied to him.
