Committee advances bill to bar officials from promoting digital assets after narrow vote

Representative Waxman, prime sponsor of House Bill 2037, told the committee the measure is intended to "modernize Pennsylvania's ethics law to reflect the new digital age" and to close a loophole that could let public officials profit from crypto projects while in office. The committee adopted amendment 03485, which narrows the definition of "immediate family" to a public official's spouse, minor child, or unemancipated child and adds requirements about trusts and blind trusts.

Members pressed the sponsor and committee staff on key details. Chairman Roy criticized the bill's disclosure and divestiture thresholds and the penalties described in bill text, calling it "kinda weird" that owning $1,000 of a digital asset would trigger reporting and arguing the listed penalties were excessive; he cited language raising a possible criminal penalty of "5 years in prison or $10,000 fine" plus a $50,000 civil fine if an official failed to divest. Representative Diamond, Representative Schaeffer and others warned the bill's definitions might sweep in many local officeholders (for example, sewer authority members, school board members) and their families. The sponsor and staff said the adopted amendment limited the family definition but that they could work on additional drafting changes.

Representative Webster argued the measure was a foundational step to prevent elected officials from acting on personal financial interests and said the lack of documented Pennsylvania cases does not mean abuse is not possible. After debate the committee voted to report House Bill 2037 as amended; the clerk announced the motion passed 14 to 12.