California has become the first U.S. state to protect unclaimed cryptocurrency from forced conversion to cash.
Governor Gavin Newsom recently signed Senate Bill 822, updating the state’s Unclaimed Property Law (UPL) to officially cover digital assets like Bitcoin and Ethereum.
Previously, dormant crypto accounts faced uncertainty over how they would be handled. Under the new law, unclaimed crypto stays in its original form, giving owners more control and clarity.
Read: The State By State Guide to Unclaimed Assets
What Senate Bill 822 Changes
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Includes digital assets under California’s Unclaimed Property Law.
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Applies to accounts inactive for at least 3 years after failed contact attempts.
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Requires custodians (exchanges or platforms) to:
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Notify owners 6–12 months before marking assets unclaimed.
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Use a standardized form approved by the Controller’s Office.
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Transfer the exact crypto and private keys to a state-approved custodian within 30 days if unclaimed.
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Custodians must hold valid licenses from the California Department of Financial Protection and Innovation.
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The state may convert crypto to fiat after 18–20 months, but owners can still reclaim the original crypto or equivalent cash.
Why This Matters
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First-in-the-nation protection for crypto holders with dormant accounts.
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Closes a legal gap, giving custodians clear rules for handling unclaimed digital assets.
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Extends control to rightful owners, giving them time to reclaim their crypto.
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Sets a regulatory example other states may follow.
Related Legislation
Governor Newsom also signed Senate Bill 243, establishing the nation’s first legal guidelines for AI “companion” chatbots, a separate technological milestone for California.
Other States and Global Trends
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Michigan: House Bill 4087 could allow up to 10% of state funds to be invested in Bitcoin and other crypto.
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Texas, New Hampshire, Arizona: Already exploring crypto as a strategic reserve asset.
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Philippines: Proposed a Bitcoin reserve with a 20-year lockup.
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El Salvador: Continues to expand Bitcoin and gold in national reserves.
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Pakistan: Plans a Strategic Bitcoin Reserve, announced May 2025 by Bilal Bin Saqib.
California’s move sets a historic precedent, ensuring that crypto owners have more security and clarity when their assets go unclaimed and signals a growing acceptance of digital currencies in both U.S. and global financial policy.
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