California Enacts Law to Safeguard Unclaimed Cryptocurrency
- California’s SB 822 includes digital financial assets under the state’s Unclaimed Property Law, treating them like bank accounts and securities.
- The bill prevents forced liquidation of unclaimed digital assets, preserving them in their native form.
- Account holders can reclaim original digital assets or net proceeds after filing a valid claim with the State Controller.
- Governor Gavin Newsom signed the legislation, making California the first state to protect unclaimed crypto from forced liquidation.
- Senate Bill SB822 was authored by Senator Josh Becker and passed unanimously through both chambers in September.
SB822 mandates that companies notify owners six to twelve months before reporting unclaimed digital financial assets, using a Controller-approved form. It also requires transferring exact asset types and amounts to a licensed custodian within thirty days after the final reporting date.
This legislation provides clarity by extending existing laws to digital financial assets, ensuring they are handled consistently and responsibly without creating taxable events for consumers without consent. (Source)
