Wyoming remains one of the most crypto-friendly states. Lawmakers approve bill to prevent forced disclosure of private keys
ONTIER MIAMI, Marta Corbí. On February 15, a bill was passed in the Wyoming House of Representatives that will prohibit state courts from compelling someone to disclose their private keys to digital assets, with one small exception.
Private keys are essential for accessing and managing digital assets, such as cryptocurrencies. If a private key is disclosed, it could allow unauthorized access to a person's digital assets, resulting in the loss or theft of these assets.
The exception would be when a public key is not available or cannot disclose details of the digital asset, digital identity, or other interest or right.
The new law W.S. 34-29-107 has been in preparation since September 2019 although it has now been approved by the Senate and the House of Representatives and will come into effect on July 1 if the state's governor, Mark Gordon, approves the project.
Wyoming has long been promoted as one of the most "crypto-friendly" states in the US. It has been at the forefront of blockchain and cryptocurrency regulation in the country, having previously passed several other bills aimed at promoting the growth of the digital asset industry in the state.
For example, it was the first state in the country to declare a decentralized autonomous organization (DAO) as a limited liability company (LLC) in July 2021.
Overall, the new law in Wyoming is an important step towards protecting the privacy and property rights of digital asset holders. The prohibition on forced disclosure of private keys provides security and certainty to individuals who own digital assets and promotes confidence in the state of Wyoming as an attractive destination for those seeking to invest in the digital asset industry.
