A new bill in Pennsylvania restricts state officials' participation in cryptocurrencies and NFTs, alongside mandatory disclosure rules.
Disclosure and Divestment Rules
The bill HB1812, filed on August 20, requires state officials to report any crypto holdings above $1,000 on their financial disclosure forms. Officials and their immediate families would have 90 days to divest assets over that threshold.
Penalties for Violations
The legislation prohibits officials from conducting crypto transactions during their term and for one year after leaving office. Violations carry substantial penalties: up to $10,000 in fines or five years in prison for felonies, and civil penalties of up to $50,000 for other breaches.
Part of a Wider Trend
Pennsylvania’s proposal is part of a national effort aimed at limiting political involvement in crypto markets. This year, federal lawmakers have introduced several bills intended to curb potential conflicts of interest among officials holding or promoting digital assets.
The bill in Pennsylvania reflects growing concerns over potential conflicts of interest among public officials as cryptocurrencies become a more mainstream aspect of financial markets.
