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SB 375

AN ACT RELATING TO STATE AFFAIRS AND GOVERNMENT -- DIGITAL ASSET KEYS--PROHIBITION OF PRODUCTION OF PRIVATE KEYS

2025 Regular Session Introduced by Sam Bell and 4 co-sponsors

Rhode Island bill would ban private cryptographic key production for digital assets, potentially restricting cryptocurrency custody, blockchain development, and asset management services.

05/12/2025 Committee recommended measure be held for further study
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WeVote Research Nonpartisan
Bill Summary · SB 375

Legislative bill overview

SB 375 would prohibit the production of private cryptographic keys for digital assets in Rhode Island. The bill appears designed to regulate how private keys—the fundamental security credentials that control cryptocurrency and blockchain assets—are created and managed within the state.

Why is this important

Private keys are the linchpin of digital asset security; whoever controls them controls the assets. A prohibition on their production could significantly impact cryptocurrency custody services, blockchain development, hardware wallet manufacturers, and any entity managing digital assets in Rhode Island. This could either protect consumers from unsafe key generation practices or create regulatory obstacles depending on the bill's specific definitions and exemptions.

Potential points of contention

  • Scope ambiguity: The bill's definition of "production" is unclear—does it prohibit all key generation, only commercial services, or specific unsafe methods? This determines whether it affects individual users, businesses, or both.
  • Technology feasibility: Digital asset management inherently requires key creation; a blanket prohibition could be technologically unworkable or require broad exemptions that undermine the stated purpose.
  • Economic impact: Cryptocurrency businesses, fintech startups, and blockchain developers may relocate to other states, potentially harming Rhode Island's tech sector and tax base.
  • Federalism concerns: Cryptocurrency regulation is increasingly federal; a state-level prohibition may conflict with emerging federal frameworks or create compliance confusion.

Compiled from official sources — confirm details with the bill’s official record.

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