You can bypass the sensor portion of the system but that's all. The system would still be operational and subject to failures in other areas but the key sensor would be bypassed.
here it is.
Here is what you need to do.Go buy a 2.2k ohm resistor at an electronics store. Go to radio shack just get one as close to that as you can.Remove the covers on the steering column and locate three small wires at the lock cylinder.Cut the yellow wire and the orange/black wire.Solder the resistor between those wires.Tape it up and put the covers back on and follow this relearn procedure.Don't worry about clearing the codes.If this doesn't work you have a wiring problem in the steering column.
The vehicle learns the Passlock™ Sensor Data Code and/or password XXXXX the next ignition switch transition from OFF to CRANK. You must turn the ignition OFF before attempting to start the vehicle.