Wyoming has once again cemented its position as one of the most crypto-friendly states in the US with the passing of a new bill that prohibits courts from compelling individuals to disclose their digital asset private keys. The bill, titled “Production of private keys; prohibition,” was passed after two years in the works, and will prevent private keys associated with digital assets, digital identity, and other rights from being forced out in any proceedings, civil, criminal, administrative, legislative, or otherwise. The bill was passed with a staggering 31-0 vote on February 15.
The bill includes a minor exception where a public key is unavailable or unable to provide details of the digital asset, digital identity, or other rights, but does not prevent anyone from being compelled to disclose information about them. Importantly, the bill also does not bar anyone from being compelled to produce, sell, transfer, convey or disclose a digital asset, digital identity or other interest or right that a private key could provide access to.
Wyoming is known for its crypto-friendly policies and has taken several steps to make it easier for blockchain and crypto companies to operate in the state. For instance, the state was the first in the US to declare a decentralized autonomous organization (DAO) as a limited liability company (LLC) in July 2021. Moreover, in February 2022, the state even considered issuing its own stablecoin.
Senator Cynthia Lummis (Republican-Wyoming), a vocal proponent of cryptocurrencies and blockchain, is one of the driving forces behind Wyoming’s crypto-friendly policies. She has been a long-time supporter of digital assets and has advocated for regulations that enable the growth of the crypto industry.
Blockchain and digital assets offer enormous potential, not just for the financial industry, but for industries across the board. We want Wyoming to be a leader in creating a regulatory environment that is safe and supportive of innovation.Lummis said in a recent interview.
The passing of the new bill further cements Wyoming’s position as a haven for the crypto industry. With other states such as Texas and Florida also looking to attract crypto companies, the competition is heating up. However, with its pro-crypto policies and supportive regulatory environment, Wyoming is well-positioned to remain at the forefront of this nascent industry.