Pennsylvania Proposes Strictest Crypto & NFT Ethics for Public Officials

Pennsylvania is poised to implement one of the most stringent ethical frameworks in the United States concerning public officials’ engagement with digital assets. A recently introduced bipartisan bill seeks to drastically limit how state employees and their immediate families can hold or trade cryptocurrencies and Non-Fungible Tokens (NFTs), aiming to preempt potential conflicts of interest in an increasingly digitized financial landscape. This legislative initiative underscores a growing recognition among policymakers of the need to integrate digital assets into traditional ethics codes, setting a precedent for public service transparency in the digital age.

Introduced on August 20, 2025, by Representative Ben Waxman, House Bill 1812 (HB1812) has garnered bipartisan backing, signaling a broad consensus on the necessity of updating the state’s ethical guidelines. The core objective of the legislation is to adapt Pennsylvania’s existing ethical code to the expanding influence of cryptocurrencies and NFTs, thereby safeguarding against situations where personal financial interests in digital assets could compromise official duties or public trust.

• Pennsylvania proposes a stringent ethical framework for public officials regarding digital assets.
• House Bill 1812 (HB1812) aims to restrict cryptocurrency and NFT holdings for state employees and their families.
• Officials would be required to disclose digital assets exceeding $1,000 and divest within 90 days.
• A complete prohibition on cryptocurrency trading would apply during office tenure and for one year post-departure.
• Non-compliance could result in severe penalties, including criminal charges, significant fines, and imprisonment.
• The bill intends to set a new standard for ethical conduct in public service within the digital age.

Mandatory Disclosure and Divestment

Should HB1812 be enacted, it would mandate that public officials disclose any digital assets exceeding a value of $1,000. Following the law’s effective date, these officials would then be required to divest themselves of such holdings within a strict 90-day period. This requirement extends to their closest relatives, a critical provision designed to prevent circumvention of the rules through indirect ownership or family trusts. The scope of this measure reflects a comprehensive approach to financial transparency within public service, targeting the potential for undisclosed influence or speculative gain.

Prohibition on Trading Activities

Beyond disclosure and divestment, the proposed legislation includes a more restrictive provision: a complete prohibition on trading cryptocurrencies. Under HB1812, officials would be barred from engaging in any cryptocurrency trading activities during their entire tenure in office and for a period of one year after their departure. This stringent rule is also applied to their immediate family members, further reinforcing the bill’s intent to eliminate any appearance of improprietary or financial gain derived from public office through digital asset markets.

Consequences for Non-Compliance

The bill stipulates severe penalties for violations, emphasizing the seriousness with which Pennsylvania intends to enforce these new ethical standards. Non-compliance could lead to criminal charges, substantial fines of up to $10,000, and potential imprisonment for up to five years. Additionally, civil penalties for infractions could reach as high as $50,000, reflecting the state’s commitment to deterring any breaches of the updated ethics code and ensuring accountability among public servants.

By introducing such robust regulations, Pennsylvania aims to establish itself at the forefront of states addressing the ethical implications of digital asset ownership for public servants. Legislators acknowledge that cryptocurrencies have become too prevalent to overlook, necessitating clear and strict guidelines. If approved, the law is slated to take effect 60 days after its official adoption, setting a new benchmark for ethical conduct in public service in the digital era and potentially influencing similar legislative efforts nationwide.