California Targets Unclaimed Crypto with New Bill
California Assembly passes bill to seize crypto left untouched for 3 years. Owners must reclaim from the state.
- Crypto held for 3 years may be taken by California.
- Bill aligns digital assets with unclaimed property law.
- The legislation now moves to the state Senate.
New Rules for Dormant Crypto Accounts
California is taking a bold step toward regulating digital assets. A newly passed bill in the State Assembly aims to treat long-dormant cryptocurrency holdings like other types of unclaimed property. If the bill becomes law, cryptocurrencies such as Bitcoin that are left untouched on exchanges for more than three years will be transferred to the state.
This legislation mirrors existing laws that handle unclaimed bank accounts or forgotten safety deposit boxes. By including crypto under the Unclaimed Property framework, California is expanding its oversight of digital assets — a move that could set a precedent for other states.
What It Means for Crypto Holders
Under the proposed law, if a crypto user doesn’t access or engage with their digital assets on an exchange for three years, the platform will be required to hand over those funds to the state government. The original owner can still reclaim their assets — but now they’d have to go through a government process.
This change could significantly impact crypto investors who take a long-term “HODL” approach or forget about smaller holdings on older platforms. Privacy advocates and crypto enthusiasts are likely to push back, citing concerns about government overreach and the complexities of verifying rightful ownership.
Next Step: California Senate Review
The bill is not yet law. It still needs approval from the California Senate before being signed by the governor. However, the Assembly’s approval signals growing political interest in reining in unregulated digital finance. If the bill passes into law, it could become a model for nationwide policy.
Crypto holders in California should start reviewing their inactive accounts now to avoid the risk of losing access to their assets.
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