Wyoming lawmakers have passed a bill that will prohibit courts in the state from forcing someone to disclose their digital asset private keys. The bill was passed by a vote of 41-13 in the Wyoming House of Representatives on Feb. 15, a day after passing 31-0 in the Wyoming Senate.

The bill states:

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

A private key is a key used to sign transactions and prove ownership of a blockchain address. One of the most important aspects of cryptocurrency. Until now, the US government and many others have not respected this in any way.

However, the law is yet to be approved by Wyoming Governor Mark Gordon, which will be effective as from July 1, 2023.

The act also states that the new law will not bar one 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.

It also doesn’t prevent one from being compelled to “disclose information about the digital asset, digital identity or other interest or right.”

Wyoming has long been touted as one of the most crypto-friendly states in the U.S. In July 2021; it was the first state in the U.S. to bring forward Decentralized Autonomous Organization (DAO) that governed decentralized finance. Will other US states follow?