Pennsylvania proposes a ban on officials holding crypto, citing Trump’s $TRUMP coin.
Pennsylvania lawmakers have proposed a ban on cryptocurrency ownership and trading for public officials, aiming to block ‘Trump-style’ self-enrichment schemes.
The legislation, introduced as House Bill 1812 on August 20, would prohibit public officials and their immediate families from owning, trading, or promoting digital assets while in office, extending the ban for a year after leaving office.
Any holdings over $1,000 would need to be disclosed, with divestment required within 90 days. Violations carry fines of up to $50,000 and potential felony charges with sentences of up to five years.
Representative Ben Waxman, the bill’s sponsor, framed the legislation as a safeguard against corruption. In a co-sponsorship memo titled “Blocking Trump-Style Crypto Corruption in Pennsylvania”, Waxman outlined how the former president’s $TRUMP cryptocurrency could be exploited to profit from public office.
The memo warns officials using digital assets to enrich themselves is “not innovation. It’s corruption – plain and simple.” HB1812 currently has eight Democratic co-sponsors and is under review by the State Government Committee.
Trump’s crypto America
Since his 2025 re-election, President Trump has positioned himself as a pro-crypto advocate, framing his policies as a defense of innovation and financial freedom.
Federal initiatives like the GENIUS Act and other deregulation measures have aimed to loosen oversight, a significant change from the previous administration’s stricter approach.
The Waxman memo, however, shifts focus from Trump’s pro-crypto policies to his personal crypto ventures, most notably the $TRUMP meme coin.
Launched in January 2025 just days before his second inauguration, the $TRUMP token is built on the Solana blockchain. Early hype pushed its price to around $75 per token, with promotional perks including a gala dinner at Trump’s golf club for top holders.
The event saw Trump appear for 23 minutes before leaving by helicopter. Since its peak, the coin has collapsed nearly 90% to around $8-9, raising concerns about speculative trading and market manipulation.
Other Trump-related crypto projects have also generated controversy. The $MELANIA coin, launched by Melania Trump, is down 98% from its peak, while the WLFI Token, linked to the Trump family’s World Liberty Financial initiative, has struck a $1.5bn deal with a fintech firm.
Waxman’s memo warns such ventures blur the line between public service and personal profit.
“No public official should be allowed to use their office to enrich themselves through cryptocurrency schemes,” it reads, positioning HB1812 as a guardrail against ethically questionable behavior in government.
Does HB1812 have a chance?
Pennsylvania is a swing state. In 2020, Democrat Joe Biden narrowly carried the state by 1.2%, while Trump flipped it back in 2024 with a 1.7% margin.
The bill raises questions about enforceability. Its definitions of “immediate family” and coverage of indirect crypto holdings could complicate oversight, particularly given the decentralised nature of digital assets.
Additionally, it could discourage tech-savvy individuals from public service and slow government adoption of new financial technologies.
Despite the challenges, HB1812 has a clear purpose. It aims to prevent conflicts of interest by stopping public officials from influencing policy while holding crypto investments.
It also reflects broader federal discussions, including initiatives like the COIN Act and MEME Act, which target crypto profiteering by politicians. In an unregulated market, the law is intended to protect public trust by reducing financial temptations which could affect decision-making.
