S 2196Technology

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

This bill prohibits courts and government bodies from forcing individuals to disclose private passwords used to access digital assets.

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Introduced Jan 23, 2026Committee Senate Artificial Intelligence & Emerging Tech

Plain-English Summary

This legislation protects individuals from being forced by the government or courts to reveal their "private keys," which are the secret codes or passwords needed to access digital assets like cryptocurrency. This protection applies in civil, criminal, and administrative legal cases. However, there is an exception: if the public information (public key) is not enough to provide necessary details, the private key might still be requested. The bill also clarifies that courts can still order someone to transfer or disclose the digital asset itself, even if they cannot force the disclosure of the specific private key.

For younger readers

Imagine you have a digital treasure chest that only opens with a special magic word that only you know. This bill creates a rule that says police, judges, or the government cannot force you to tell them that magic word. While they might be able to ask you to move the treasure or show them what is inside, they usually cannot make you give up the secret code that belongs only to you. This helps keep your digital secrets safe and private.

Who & Where It Applies

Impacted groups

Cryptocurrency ownersLaw enforcement agenciesAttorneys and JudgesDigital asset investorsFinancial crime investigators

Impacted communities

All

Constitutional & Fiscal Check

None Likely

Estimated cost

None

Estimated revenue

None

Bill Analysis

Both viewpoints

For Progressives

Strengthens civil liberties by protecting individuals from intrusive government searches into personal digital data and assets.
Reinforces the right to privacy and protection against self-incrimination in the digital age, preventing state overreach in legal proceedings.
Protects citizens from potential abuse of power by authorities who might otherwise demand access to private digital communications and financial tools.
May allow wealthy individuals to hide assets more easily during divorce proceedings or tax investigations, exacerbating economic inequality.
Could hinder the state's ability to investigate and prosecute financial crimes, fraud, or money laundering schemes that exploit digital currencies.
Might make it difficult to recover stolen funds or assets for victims of digital theft if the government cannot compel the production of keys.

For Conservatives

Upholds strong private property rights by ensuring the government cannot seize the essential means to access one's personal digital belongings.
Limits the power of the government and the judicial system to intrude upon the private lives and assets of citizens.
Prevents the government from weaponizing legal proceedings to force the disclosure of sensitive personal information.
Could impede law enforcement efforts to stop criminal organizations and terrorists who use cryptocurrency to finance their operations.
May create legal loopholes that allow criminals to evade justice by claiming they cannot be compelled to provide access to evidence.
Restricts the ability of the courts to enforce rulings and uphold the rule of law regarding the seizure of illicit assets.

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.