Pennsylvania lawmaker Ben Waxman, a Democrat, has introduced a bill that would prevent public officials from owning or transacting in digital assets while in office.

The proposal, known as the House Bill 1812 (HB1812), aims to amend the state’s ethics and financial disclosure laws and extend those restrictions to officials’ immediate families.

The legislation covers a broad spectrum of digital assets, including cryptocurrencies, memecoins, NFTs, and stablecoins, and would apply both during an official’s term and for one year after leaving office.

Under the proposal, public officials must divest any digital holdings within 90 days of assuming office or from the bill’s effective date. The prohibition would extend beyond direct ownership, applying to assets held through companies, trusts, funds, or financial products such as derivatives and ETFs.

Lawmakers must also disclose any digital asset holdings worth more than $1,000 in their annual financial statements.

Meanwhile, violations of the proposed law could trigger significant consequences.

Ethics breaches in Pennsylvania can carry felony charges, meaning that public officials who fail to comply could face civil penalties of up to $50,000 or even prison time.

According to the crypto legislation tracking platform Bitcoin Laws, HB1812 has only cleared the first committee stage, the second of six steps required before it could become law.

Democrats raise efforts to curb digital asset conflicts

Waxman’s proposal aligns with a growing effort among Democratic lawmakers to curb potential conflicts of interest tied to digital assets.

Earlier this year, Congressman Sam Liccardo proposed legislation to prevent government officials and their families from profiting from cryptocurrencies, including memecoins.

His bill sought to ban elected officials, spouses, and dependent children from issuing, promoting, or financially benefiting from digital securities and commodities, calling the measure “a way to make corruption criminal again.”

Over the years, the Democratic Party has taken a consistently cautious stance toward crypto.

Senior lawmakers such as Senator Elizabeth Warren and Representative Maxine Waters have argued that public officials’ involvement in digital asset markets, illustrated most recently by figures like President Donald Trump, raises ethical and legal concerns.

They have also continued highlighting risks tied to the industry, ranging from market volatility to the potential for misuse in illicit finance.

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The leaders of a Brazilian crypto Ponzi scheme have reportedly been handed a combined sentence of over 170 years behind bars.

According to a new report, the three leaders of Braiscompany, which perpetrated the scheme, were sentenced for defrauding investors out of nearly $190 million, or $1.1 billion Brazilian Reals.

The report says the company’s main operator, Joel Ferreira de Souza, was handed a sentence of 128 years behind bars, while the other two perpetrators, Gesana Rayane Silva and Victor Augusto Veronez de Souza, were given sentences of 28 and 15 years, respectively.

According to authorities, the trio promised “exorbitant” returns on the crypto investments of their victims in order to initially get their funds and engaged in money laundering.

Ferreira de Souza was found to be controlling crypto portfolios through third parties, as well as using shell companies to facilitate his crimes. He was convicted of 11 counts of money laundering, while Reyane Silva, the firm’s broker, was found responsible for intermediating financial transactions and transporting funds. De Souza, Joel’s son, was also found guilty of being involved with one of the companies involved in the illegal transactions.

The judge in the case said that proceeds from the scam should go directly to the government. However, Artêmio Picanço – the lawyer representing the victims of Braiscompany – argued on one of his social media accounts that the fund should go directly to the victims.

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