CALIFORNIA – Assembly Bill 1052 passed the California Assembly, 78-0, on June 3, allowing seizure of crypto assets from an exchange wallet as unclaimed property, after three years of inactivity.
The bill also lets individuals and businesses accept digital assets as valid legal payment for goods and services.
It now moves to the Senate where it could be modified, rejected, or passed without changes. If enacted, the law is set to take effect on July 1, 2026.
‘Stays in the form of Bitcoin rather than be liquidated’
Bill author assemblymember Avelino Valencia said with the growing adoption of digital assets, the state must address the risk of unclaimed property in this space.
The bill mandates that digital assets held in exchange accounts become the state’s property after three years of inactivity or undelivered communication.
The private key holder – the exchange, must transfer the assets to a custodian. The State Controller will designate a custodian by January 1, 2027.
Satoshi Action Fund policy director Eric Peterson said the bill updates unclaimed property laws so when Bitcoin is turned over as unclaimed property from an exchange, it stays in the form of Bitcoin rather than being liquidated.
“No one touches your keys or your wallet,” wrote Peterson in a post on X. “AB 1052 says: Hold them as they are.”
Self-custody wallets are exempt
Self-custody wallets – digital wallets where users fully control their private keys, are exempt from the bill.
