The evolution of the crypto sector often comes up against legislation and regulations. While regulators like the SEC seek to constrain the industry, others seek to provide a framework of legal protection. This is the case of the State of Wyoming which wishes to prevent the forced disclosure of private keys. If approved, the bill will come into force in July.
Protection against forced disclosure of private keys
Wyoming lawmakers have passed a bill to ban forced disclosure of crypto private keys. Thus, the courts of the State of Wyoming will no longer be able to compel a person to divulge their private keys. The bill (WS 34-89-107) with the official title: “ Production of private keys; prohibition » has been in preparation since September 2019. The whole thing is listed in Chapter 29 related to the legal management of digital assets.
Touted as the most crypto-friendly US state, Wyoming intends to offer a protection against forced disclosure. The law will come into effect on July 1 if the project is approved by Governor Mark Gordon. The law includes any private key related to cryptos and a person’s digital identity. It also includes any private key associated with any other interest or right to which the private key gives access.
The exception to the ban
However, the bill provides for a minor exception. Forced disclosure is not prohibited when a public key is unavailable. This is also the case when it is unable to disclose details of the digital asset, digital identity or any other interest or right.
Wyoming’s new law doesn’t allow for evading justice either. Indeed, it only involves the disclosure, sale or transfer of the data or crypto concerned. The condition being that the person is not required to produce or disclose the private key.
In the vote, the bill won 31-0 in the Wyoming Senate. Then, the bill passed the House of Representatives on February 15, where it received 41 out of 54 votes. This speaks to Wyoming’s openness to digital data protection.
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