California Protects Unclaimed Crypto
California Governor Gavin Newsom has signed legislation to protect unclaimed crypto from forced liquidation.
The legislation ensures crypto remains in its native form rather than being converted to cash before transfer to state custody.
Senate Bill 822 updates California's Unclaimed Property Law to include digital financial assets, treating Bitcoin, Ethereum, and other cryptos with the same legal framework that governs abandoned bank accounts and securities.
California is the first state to explicitly protect unclaimed crypto from forced liquidation.
Author: The bill was authored by Senator Josh Becker (D-Menlo Park) and passed unanimously through both chambers in September.
Summary: California becomes the first state to protect unclaimed crypto assets.