U.S. Regulation

California Passes Bill to Seize Unclaimed Bitcoin and Crypto

The California State Assembly has passed Assembly Bill (AB) 1052 with a 69-0 vote that mandates the state to seize Bitcoin and other cryptocurrencies left unclaimed for 3 years. Now, the Senate will vote on the bill. Introduced by Democrat member Avelino Valencia, the bill includes digital assets, including virtual currencies, cryptocurrencies, or other digital-only assets in the already existing list of traditional assets such as bank accounts and safe deposits within the legal framework.

To put it simply, the bill, once passed, allows the state of California to seize cryptocurrencies left unclaimed on exchanges for 3 years, which can then be claimed by their owners. Notably, the bill earlier mentioned crypto self-custody provisions which have been deleted. AB 1052 is the latest crypto-related bill to see progress in the California State Assembly. Only recently, the assembly unanimously passed AB 1180 on June 2.

AB 1180 is another crypto-related bill that allows state agencies to accept crypto payments. If the Senate also passes the bill and it becomes the law, it will require the Department of Financial Protection and Innovation (DFPI) to formulate rules to allow crypto payments under the Digital Financial Assets Law (DFAL). AB 1180 could come into force as early as July 1, 2026, and run as a pilot until January 1, 2031. It could then be fully implemented. California finds company among states such as WyomingFlorida, Texas, and New Hampshire that are proactively pursuing crypto regulation.

Terron Gold

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