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H 7957Technology

State Affairs and Government - Digital Asset Keys - Prohibition of Production of Private Keys

This bill prohibits courts from forcing individuals to reveal private security codes for digital assets, with limited exceptions.

Held for study
Population
Affected
15
Email Legislator
Introduced Feb 27, 2026Committee House Innovation, Internet, & Technology

Plain-English Summary

This legislation protects the security of digital assets, such as cryptocurrency, by prohibiting courts and government bodies from forcing individuals to reveal their "private keys" (the secret codes or passwords used to access these assets). This protection applies in civil, criminal, and administrative proceedings. However, there is an exception: if the public information (public key) is unavailable or cannot provide the necessary information, a person may still be compelled to produce the private key. The bill clarifies that courts can still order the transfer or sale of the digital asset itself, just not the disclosure of the specific private key unless necessary.

For younger readers

Imagine you have a digital treasure chest that can only be opened with a secret magic word. This bill says that usually, the police or judges cannot force you to tell them your secret magic word. They might still be allowed to tell you to move the treasure or show them what is inside if they have a good reason, but they cannot make you give up the secret word itself. This helps keep your digital secrets safe. However, if there is absolutely no other way for them to get the information they need, they might still have to ask for the word.

Who & Where It Applies

Impacted groups
Cryptocurrency ownersDigital asset investorsLaw enforcement agenciesDefense attorneysCourts and Judges
Impacted communities
All

Constitutional & Fiscal Check

None Likely

Estimated cost
None
Estimated revenue
None

Bill Analysis

Both viewpoints
For Progressives
  • Strengthens digital privacy rights by preventing the state from forcing individuals to surrender personal encryption keys, protecting citizens from intrusive government surveillance.
  • Reinforces protections against self-incrimination in the digital age, ensuring individuals are not compelled to provide the government with the tools to access their private data.
  • Establishes a necessary check on state power regarding the seizure of intellectual and digital property, aligning with civil liberties advocacy.
  • Could hinder law enforcement and regulatory agencies from effectively investigating financial crimes, money laundering, and tax evasion involving cryptocurrency.
  • May provide a shield for wealthy individuals to hide assets from the government and the community, potentially exacerbating wealth inequality and shielding tax dodgers.
  • Limits the transparency of digital transactions in legal disputes, potentially making it more difficult for victims of fraud or wage theft to recover assets from employers hiding money in crypto.
For Conservatives
  • Strengthens private property rights by ensuring that the government cannot force individuals to surrender the unique keys to their digital assets.
  • Limits government overreach and surveillance powers, preventing the state from compelling citizens to reveal private information without extreme cause.
  • Promotes economic freedom and innovation by creating a secure legal environment for digital asset owners and investors, encouraging the growth of the crypto industry.
  • Could impede law enforcement efforts to investigate and prosecute cybercrimes, drug trafficking, or terrorism financing that utilize digital assets to hide funds.
  • Might complicate the judicial process by creating barriers to evidence collection in valid criminal and civil proceedings, potentially delaying justice.
  • Potentially undermines the rule of law by allowing individuals to withhold crucial information even when a court has determined a need for asset disclosure.

Votes

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Full Bill Text

Changes to existing Rhode Island law · 27 additions

SECTION 1. Title 42 of the General Laws entitled "STATE AFFAIRS AND GOVERNMENT" is hereby amended by adding thereto the following chapter: 42-64.35-1. Short title. This chapter shall be known and may be cited as the "Digital Asset Keys -- Prohibition of Production of Private Keys." 42-64.35-2. Purpose. This chapter prohibits the compelled production of a private key that relates to a digital asset, except as provided in § 42-64.35-4. 42-64.35-3. Definitions. As used in this chapter the following words and phrases shall have the following meanings, unless the context otherwise requires:

(1) "Private key" means a unique element of cryptographic data, or any substantially similar analogue, which is:

(i) Held by a person;

(ii) Paired with a unique, publicly available element of cryptographic data; and

(iii) Associated with an algorithm that is necessary to carry out an encryption or decryption required to execute a transaction. 42-64.35-4. Public key exception. 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. 42-64.35-5. No prohibition for lawful proceeding. This section shall not be interpreted to prohibit any lawful proceeding that compels a person to produce, sell, transfer, convey or disclose a digital asset, digital identity or other interest or right to which a private key provides access, or to disclose information about the digital asset, digital identity or other interest or right; provided that, the person is not required to produce or disclose the private key except as otherwise required in this chapter.

SECTION 2. This act shall take effect upon passage.