Law Protecting Cryptocurrency Wallets Passes in Wyoming
CriptoFácil – In the United States, the state of Wyoming passed a law that protects its citizens’ cryptocurrency wallets. Under the new law, the government will not be able to compel people to disclose their private keys, with one singular exception.
“No person shall be obligated to produce a private key or make it known to any other person in any civil, criminal, administrative, legislative or other proceeding in this state relating to a digital asset, digital identity or other interest or right to which the key private provides access, unless a public key is unavailable or unable to disclose necessary information regarding the digital assetdigital identity or other interest or right”, says the text of the law.
It is worth highlighting the exception marked in bold by the CriptoFácil report. She also says that authorities may request information about the contents of the wallet. However, the state will not have the right to demand that its owner hand over the passwords that protect his cryptocurrencies.
Therefore, the law states that there needs to be transparency (something that the blokchain already offers), but it protects private property. In a sense, the law functions as a “bill of rights” that protects users from confiscation or other forms of theft.
The Wyoming Senate and the local House of Representatives have already approved the bill. Now, the approval of the state governor is enough for the proposal to become law. If approved by the governor, the bill will take effect on July 1, 2023.
pro cryptocurrency state
The new law does not specify whether the protection only applies to Bitcoin (BTC) wallets, but it implies that it applies to other cryptocurrencies. Although it has exceptions, the project has received praise from pro-crypto bodies in the US.
Christopher Allen, Internet cryptography pioneer and CEO of Blockchain Commons, has written about the importance of protecting the sovereignty of private keys. Allen praised the new law and said that Wyoming has been an innovative state for this type of legislature.
The state has federal senator Cynthia Lummis, from the Republican party, who has become a staunch supporter of BTC in Congress. Thanks to the influence of the senator, the country passed several laws that authorize investments in cryptocurrencies by companies.
Additionally, Wyoming was the first US state to recognize the Autonomous Decentralized Organizations (DAO) as a business. In the Federal Senate, Lummis is one of the voices pushing for regulation within the country, but to bring security to investors.
“[Wyoming] it has a long tradition of ‘good fences make good neighbours’… and as a small state it has a true ‘citizen’ legislature…. they resonate well with the concept of “Self-Sovereignty” in and digital identity,” said Allen.
By CriptoFacil