Wyoming Lawmakers Move to Prevent Forced Disclosure of Private Keys
- Wyoming was the first US state to establish a legal structure for decentralized autonomous organizations.
- Several US states have come up with new crypto-focused policies in recent weeks.
- Kansas recently proposed a law to cap cryptocurrency donations at $100.
Lawmakers in Wyoming have approved a bill that, with a slight exception, forbids the state’s courts from ordering anyone to reveal the private keys to their digital assets. The law will take effect on July 1 if Mark Gordon, the governor of Wyoming, approves the bill.
Private keys in the blockchain space are used to verify crypto transactions and show ownership of an asset. The new Wyoming bill titled “Disclosure of Private Cryptographic Keys” applies to all situations except cases where relevant information is unavailable through alternative options.
According to the incoming law,
No person shall be compelled to produce a private key or make a private key known to any other person in any civil, criminal, administrative, legislative, or other proceeding in this state that relates to a digital asset, digital identity, or other interest or right to which the private key provides access unless a public key is unavailable or unable to disclose the requisite information with respect to the digital asset, digital identity, or other interest or right.
According to the bill, the regulations are not meant to obstruct any lawful procedure that demands individuals disclose their ownership or transfer of cryptocurrency. Wyoming has proposed various blockchain-related laws, including one for a blockchain filing system and another that establishes a legal framework for decentralized autonomous organizations, or DAOs, which manage decentralized finance protocols.
Wyoming is one of the most crypto-friendly states in the US. In February 2022, Wyoming also considered launching a state-issued stablecoin. But it doesn’t seem like much has changed since then.
Lawrence has covered some exciting stories in his career as a journalist, he finds blockchain-related stories very intriguing. He believes Web3 will change the world and wants everyone to be a part of it.
