diff --git a/electrum b/electrum
index f615d1483..5b3710c36 100755
--- a/electrum
+++ b/electrum
@@ -275,7 +275,10 @@ if __name__ == '__main__':
 
     # commands needing password
     if cmd.requires_password:
-        if wallet.use_encryption:
+        if wallet.seed == '':
+            seed = ''
+            password = None
+        elif wallet.use_encryption:
             password = prompt_password('Password:', False)
             if not password:
                 print_msg("Error: Password required")