Well, you could try it, but it's going to take a heck of a long time to dry it. I agree that cypress is a softwood, but I don;t think it necessarily Must be a hardwood. Bark River, et al, uses redwood on one or more of their knives. Granted, redwood is a relatively stable wood, but so is cypress. If it's a fine blade and the scales will be glued and pinned permanently, I'd be a little more reluctant to use softwoods. But if not, and especially if the scales can be screwed on with 'cago screws, then a nice softwood could be pretty sweet.
It aint really my cup-o-tea, these softwoods, but being a woodworker, anytime somebody cuts down a tree, I have to have some (or all) of it. It usually doesn;t matter what type of tree, but I particularly like fruitwoods - apple, pear, apricot, etc. The trick is to cut them well oversized, seal the ends with glue or paint, and let them dry outside (covered with plenty of air circulation) for several months (if small pieces) before bringing them into the shop, where they'll need to dry for several more months. Even then, I still neewd to square the pieces that have warped and twisted with light cuts, then let them continue to dry. With some woods, each time you do this they warp again and again, until you've cut the blank down to sawdust (((

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Actually, on review of this post, I'm not so sure cypress is a "softwood". I'll have to look it up. It is certainly soft and light as opposed to hard and dense, but there are many hardwoods like that. Hmmmm...I'm gonna have to look this one up.