California Assembly Advances Bill Regulating Unclaimed Crypto

California Assembly has unanimously passed Assembly Bill (AB) 1052 regulating unclaimed cryptocurrency assets, advancing to the State Senate for further consideration as of June 3, 2025.

The bill’s passage highlights its importance for regulating idle cryptocurrency, ensuring clearer regulatory frameworks for digital assets.

Assembly Bill (AB) 1052 was passed unanimously by the California State Assembly. It aims to regulate unclaimed cryptocurrencies by transferring inactive assets to state custody. The California Department of Financial Protection and Innovation is responsible for implementing this framework.

The bill mandates licensing for digital asset financial activities, ensuring tighter scrutiny. It specifies that inactive cryptocurrencies, unused for three years, transfer to state custody. However, owners may reclaim these assets later. Bitcoin, Ethereum, and altcoins are primarily impacted.

Approved merchant payment provisions enable Californians to accept cryptocurrency for transactions, fostering crypto adoption. Potential market effects could result if legislation is enacted by 2026. Several states have unclaimed property laws, but California’s specificity to crypto is noteworthy.

The advancement of AB 1052 has stirred interest in regulatory approaches to digital assets. Future implications hinge on final legislative outcomes. California moves toward greater regulation for unclaimed crypto, setting industry precedents in handling digital assets.

The regulatory shift highlights the increasing focus on securing unclaimed digital assets systematically. The bill’s effectivity date, July 1, 2026, is pivotal for impending changes in digital asset management as market behaviors adjust accordingly.