Wyoming’s legislators have passed a bill to prevent state courts from demanding individuals deliver their private keys and cryptocurrency. Nevertheless, this law would not be applicable if the public key is unable to offer information about digital assets such as identities, rights, or interests. This new legislation is called “Production of Private Keys; Prohibition” (W.S. 34-29-107).
“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[s].”
Wyoming crypto bill
On Feb 15, the 67th general session of the Wyoming House of Representatives voted to pass the new bill. If Governor Mark Gordon approves it, this law will take effect on Jul 1.
According to this new law, individuals will not be constrained from “producing, selling, shifting, or revealing a digital asset (like cryptocurrency), digital identity or other interest/right.” However, they may still be compelled to reveal the asset’s particulars.
Wyoming takes the lead in cryptocurrency regulation
Wyoming is one of the nation’s most crypto-friendly states. In Jul 2021, it became the first U.S. jurisdiction to acknowledge decentralized autonomous organizations as limited liability business entities legally. Furthermore, earlier in February 2022, Wyoming proposed its sovereign stablecoin but hasn’t moved forward much since then.
However, other states in the U.S. are yet to catch up and create similar laws or regulations for cryptocurrencies and digital assets. A 2022 study revealed that Nevada is currently the most Cryptocurrency-friendly state in America; Florida is second, followed by California in third place respectively. Nevertheless, no other jurisdiction has established a law protecting users’ private keys as comprehensively as Nevada has.
Wyoming has moved toward the cryptocurrency market as Bitcoin and other cryptocurrencies have surged in value. The global crypto market capitalization saw an 8% rise over 24 hours, reaching $1.16 trillion, while Bitcoin made a 10.7% gain on the daily charts. It is essential to know that the renewed interest is likely due to investors being more comfortable with cryptocurrency regulations worldwide.
