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California may seize inactive crypto after 3 years under a new unclaimed property bill. Bill mandates unclaimed crypto be held in native form, not liquidated to fiat. New rules may push traders toward self-custody due to fears over state asset claims. California’s State Assembly has given its approval to a new bill, Assembly Bill 1052, that could significantly change how digital assets are treated under the state’s unclaimed property laws. The bill passed with a strong 78–0 vote on June 3.  If it becomes law, AB 1052 seeks to classify idle cryptocurrency held on exchanges as unclaimed property if it’s left untouched for more than three years. Importantly, the bill would then give the state authority to take custody of these assets while keeping them in their original crypto form. 🇺🇸 JUST IN : California Assembly passes bill to regulate Digital Assets under ‘Unclaimed Property’ law. The bill now moves to the Senate. Law explained: Assets left on an exchange for 3 years will transferred to the state, and can then be claimed by the owner. pic.twitter.com/u9XftO0XRy — Bitcoin Laws (@Bitcoin_Laws) June 4, 2025 Related: North Carolina’s ‘Digital Asset Freedom Act’ Looks More Like a Bitcoin Bill How AB 1052 Defines and Handles Unclaimed Crypto Assets Under this proposed legislation, any digital asset account that stays inactive for three years could be subject to a state claim. The bill spells out that an “act of ownership interest” includes things like logging into the account, transferring or withdrawing funds, or carrying out any transaction that clearly signals the owner’s awareness and control of the asset. If no such action is detected for three years, the asset then may be considered unclaimed. A key part of the bill is that it mandates any unclaimed crypto be maintained by the state in its…

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Filed under: News - @ June 5, 2025 8:26 pm