Rep. Ben Waxman (D-Philadelphia) wants to stop public officials from owning or trading cryptocurrency while they hold office. He introduced House Bill 1812 in response to concerns that government officials and businesses are getting more involved with blockchain without clear rules on conflicts of interest. The proposal comes as more residents explore digital finance options, including secure web3 wallet 2025 solutions that support multiple blockchains, provide users with unmatched security, and ensure access to crypto and blockchain is easier and quicker.

New rules for digital assets

Waxman filed the bill on Aug. 20, 2025. It would add digital assets to Pennsylvania’s public-ethics code which covers cryptocurrencies, stablecoins, and NFTs.The state has no specific rules right now that address whether elected officials can own digital assets.

State or local officials who hold more than $1,000 in digital assets would need to report those holdings to the Pennsylvania State Ethics Commission and sell them within 90 days of taking office. Spouses and immediate family members would face the same restrictions.

Waxman said the public must be confident that lawmakers are not profiting from technologies they regulate, noting that public decisions can now move markets instantly. The bill treats digital assets the same way stock holdings are treated under current ethics law.

The bill would also stop covered individuals from buying or selling digital assets while in office and for one year after leaving public service. These conflict-of-interest rules update standards that were written before decentralized finance existed.

What the bill does

According to the official draft before the committee (Printer’s No. 2229), House Bill 1812 would:

Define digital assets within Pennsylvania’s Public Official and Employee Ethics Act for the first time

Mandate disclosure and divestment of crypto holdings over $1,000

Ban trading by officials and their families during service and for 12 months afterward

Set civil penalties with fines up to $50,000 for violations

Give the State Ethics Commission power to create reporting procedures and track compliance

National watchdogs take notice

The committee has not scheduled hearings or amendments yet. National watchdog groups and crypto-policy observers are watching the bill. Some see Pennsylvania’s method as a template for other states working through conflicts between public duty and private digital wealth.

Dr. Elena Rivas, a political-ethics scholar at Temple University, said the bill takes action before a scandal happens. Crypto moves fast, and transparency rules need to keep up, Rivas added.

The Securities and Exchange Commission and Commodity Futures Trading Commission continue to debate how digital assets should be classified at the federal level. Waxman’s bill focuses on state governance and ethical conduct rather than market regulation.

Mixed response from tech community

Reaction inside Pennsylvania’s blockchain community has been divided. Entrepreneurs argue that the measure could discourage tech-literate public officials from getting involved with digital-innovation policy. Some worry the rules are too strict for officials who understand the technology. Others say that taking away lawmakers’ personal stakes will build trust and investor confidence.

The committee still has HB 1812. No votes or amendments have been recorded. What happens next will come down to whether legislators think Pennsylvania’s crypto industry matters more than tighter ethics rules. HB 1812 is still before the House State Government Committee as of mid-October 2025.


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