Wyoming passed a bill that protects crypto users’ private keys from forced disclosure

The US state of Wyoming recently passed a new bill that that will protect crypto users’ funds from the US courts moving forward. The Bill, known as the “Disclosure of private cryptographic keys” bill, prohibits forced disclosure of private keys.

This is an important move as private crypto keys are used for verifying crypto transactions and proving ownership of assets or blockchain addresses. The bill will take effect this year in July, and it will apply in all cases, except in one situation — when information relevant to a case cannot be reached through alternative means.

Details of the new crypto bill

The bill specifically says that no person shall be compelled to produce their private key or make it known to any other individual in any proceeding, including civil, administrative, criminal, legislative, or other. The rule will only apply to this particular state, of course, and it relates to digital identities, digital assets, or other interests or rights to which the private key provides access.

The bill specifies that the only exception to the rule is if a public key is not available or if it is impossible to disclose the requisite information with respect to the digital asset, identity, or other interest or right.

The bill further goes on to say that the rule is not meant to disrupt the lawful proceedings that require people to disclose crypto transfers or ownership of crypto assets. The bill also doesn’t specify that it only aims to protect Bitcoin keys, despite many calling it a “bitcoin private keys protection bill.”

Crypto community praises Wyoming for the new bill

So far, the State of Wyoming has passed several blockchain-oriented laws and rules, such as the blockchain filing system, as well as a legal framework for DAOs, that govern decentralized finance.

With that being the case, the state became the center of attention in terms of crypto adoption in the US. One big reason for this has been Senator Cynthia Lummis’ unyielding support of Bitcoin and digital assets in general. The Senator pushed for regulation within the entire country.

Now, crypto experts such as the internet cryptography pioneer and executive director of Blockchain Commons, Christopher Allen, started calling the move “groundbreaking,” praising Wyoming for its support of the industry. Allen also wrote for Bitcoin Magazine in the past, stressing the importance of protecting the sovereignty of private keys.

Commenting on Wyoming’s new bill, he said that the state has a long tradition of “good fences make for good neighbors,” and while it is a small state, Wyoming has a true “citizen” legislature.

As for the bill itself, it is still waiting for the approval from the governor, but if it receives it, it will take effect on July 1st this year.