Unclaimed Bitcoin in California: Navigating the Seizure Loophole
David ClarkeThe California House passed a bill that would let the state seize crypto sitting on exchanges—but advocates say it's actually a good thing.[...]
California Crypto Holders Remain Secure Under New Unclaimed Property Law
California has taken steps to safeguard cryptocurrency investors with the passage of Assembly Bill 1052. This new legislation prevents exchanges from liquidating unclaimed digital assets, instead requiring them to hold these assets until reclaimed by their owners.
How the Law Protects Crypto Investors
Under AB 1052, cryptocurrency holders must demonstrate account activity at least once every three years to prevent their assets from being classified as unclaimed property. Acceptable actions include:
- Executing transactions
- Accessing accounts electronically
- Other verifiable interactions with the digital assets
If assets do become unclaimed, the state will maintain custody in their original form rather than converting them to cash.
Industry Perspectives
Eric Peterson of the Satoshi Action Fund praised the legislation, stating: "This ensures Bitcoin remains Bitcoin when transferred as unclaimed property, rather than being liquidated by exchanges."
Legal expert Hailey Lennon noted the law aligns with existing unclaimed property frameworks: "Like other assets, these will be returned when owners contact the state."
The bill represents California's ongoing effort to create regulatory clarity for digital assets while protecting investor interests in this evolving financial landscape.
