Pennsylvania is considering a tough new law to keep crypto out of the hands of its public officials. A Democratic lawmaker, Rep. Ben Waxman, recently proposed a bill that would severely restrict how officials and their families can deal with cryptocurrency.
What the Bill Does
House Bill 1812 would make it illegal for public officials and their families to buy, sell, or trade cryptocurrencies worth over $1,000 while in office, and for a year after leaving office. Anyone already owning crypto would have to sell it within 90 days of the law passing. Breaking the rules could mean hefty fines (up to $50,000) and even jail time (up to five years).
Why This Bill?
Waxman says the bill is a response to concerns about high-profile figures, like President Trump, and their involvement in cryptocurrency ventures. Critics argue that these ventures create conflicts of interest, blurring the lines between public service and personal profit. The bill aims to prevent this type of potential abuse.
Federal Echoes
Pennsylvania isn’t alone in this. Similar bills are being considered at the federal level, aiming to stop politicians from launching their own crypto tokens or promoting them while in office. Concerns exist that these tokens could be used by foreign actors to manipulate markets.
Arguments For and Against
Supporters of the Pennsylvania bill say it’s a simple ethics rule – public servants shouldn’t get rich off crypto schemes while in office. They point to the volatility and lack of regulation in the crypto market as reasons for concern. Opponents might argue the bill is too broad or could discourage public servants from investing in general, though official Republican responses haven’t been released yet.