Pennsylvania Eyes Restrictions on Crypto Holdings by Officials
Pennsylvania Proposes Ethics Bill Targeting Public Officials' Crypto
Pennsylvania has introduced House Bill 1812 (HB1812), a new piece of legislation aimed at tightening ethical and financial disclosure standards for public officials concerning digital assets. The bill seeks to restrict public officials and their immediate families from owning or transacting cryptocurrencies, meme coins, and NFTs.
HB1812: Key Details of the Pennsylvania Crypto Bill
According to the official filing, HB1812 prohibits public officials and their families from possessing or trading digital assets during their term and for one year afterward. It defines digital assets broadly as anything transferable or tradable in digital form, including cryptocurrencies and NFTs.
The bill mandates that officials holding digital assets must divest them within 90 days of taking office or within 90 days of the bill's enactment. This measure intends to prevent conflicts of interest that could arise from their financial stakes influencing decision-making.
"The aim of this bill is to prevent the potential misuse of public trust through investments in a sector that is still volatile and largely unregulated," a representative stated during the bill’s presentation.
Notably, this bill surfaces amidst ongoing scrutiny of figures like former U.S. President Donald Trump and his involvement in the crypto space. Recent proposals, such as the “Stop Trump in Crypto Act,” highlight concerns over public officials' engagement with cryptocurrencies.
Disclosure Requirements and Penalties for Non-Compliance
HB1812 requires public officials to disclose digital assets valued over $1,000 in their annual financial disclosure statements. This measure promotes transparency, allowing the public to monitor the financial interests of elected officials.
Failure to comply with HB1812 can result in significant civil penalties. Violators may face fines up to $50,000 for failing to divest or disclose their digital asset holdings. Further violations of the broader Pennsylvania Ethics Act could lead to additional fines or even imprisonment.
Adding to the regulatory landscape, Pennsylvania recently enacted regulations requiring digital asset transmitters to obtain a license, aligning with states like New York.
For entities launching tokens or managing digital assets within Pennsylvania, ensuring regulatory compliance is crucial. Platforms like Codeum offer services such as KYC/AML compliance and smart contract audits, aiding in secure and compliant operations.