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.
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.
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 native form; for example, as Bitcoin (BTC), rather than being immediately converted into fiat currency. These assets would then be transferred from the exchange to a state-licensed custodian.
According to Eric Peterson, policy director at the Satoshi Action Fund and an early contributor to the legislation, this ensures the state would hold the digital assets in their original form. This approach then enables the rightful owner to reclaim them later as actual crypto.
In addition to managing unclaimed digital assets, contains provisions that would allow individuals and businesses in California to use cryptocurrency for private transactions, including payments for goods and services.
It also introduces new licensing requirements. Starting July 1, 2026, only entities exempted or licensed by the Department of Financial Protection and Innovation would be permitted to engage in digital financial asset business activities in the state.
The bill has drawn a wide range of reactions online. Some traders have expressed unease, interpreting the legislation as a threat to long-term holders who do not frequently access their accounts. One concern circulating among digital asset holders is whether a passive investment strategy could inadvertently result in state custody of their funds.
Others have pointed to the bill as a motivation to move assets into self-custody. Critics have described the measure as overreach, while others, including Peterson, that the bill aligns with existing unclaimed property regulations and includes consumer protections by preserving the form of the assets.
