California’s State Assembly has unanimously passed Assembly Bill 1052 (AB 1052), setting the stage for major changes in how the state handles unclaimed cryptocurrency and crypto payments. The bill, approved in a 78-0 vote on June 3, now heads to the California Senate for further review.
🪙 Idle Crypto May Be Claimed by the State
Under AB 1052, crypto held in exchange accounts with no user activity for three years could be deemed unclaimed property and transferred to the state. Activities that count as user engagement include:
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Depositing or withdrawing funds
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Buying or selling crypto
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Logging into the account
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Taking any action that confirms the user is aware of the holdings
If passed, the law would take effect July 1, 2026. The legislation aligns crypto with California’s existing unclaimed property laws applied to inactive bank and brokerage accounts.
⚖️ Bill Aims to Keep Crypto in Native Form, Not USD
Some users feared the bill meant the state would liquidate their Bitcoin. However, Eric Peterson of the Satoshi Action Fund, who helped draft the bill, clarified this is not the case.
“The law ensures your Bitcoin is retained in native form by a state-appointed licensed custodian, not sold into dollars,” said Peterson.
This means that if the state takes custody of idle BTC, owners can still reclaim actual Bitcoin, not fiat cash.
🛒 Legalizing Crypto Payments in California
The bill also paves the way for broader use of crypto as a payment method in California. It would officially allow:
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Individuals and businesses to accept crypto for goods and services
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Private transactions using crypto
The new legal framework would also require licensing for digital financial asset activities through California’s Department of Financial Protection and Innovation, unless exemptions apply.
💬 Mixed Reactions from Crypto Community
While some critics see the bill as government overreach, others — including former Coinbase legal counsel Hailey Lennon — noted that similar laws already exist in many U.S. states.
“Most states have unclaimed property laws that exchanges comply with,” Lennon said. “Owners can recover funds by contacting the state.”
If approved by the Senate and signed by Governor Gavin Newsom, California would become one of the first states to modernize its unclaimed property laws specifically for digital assets, while also supporting crypto’s role in mainstream commerce.
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