What happened?
California’s State Assembly unanimously approved Assembly Bill 1052 (AB 1052), which aims to change how unclaimed digital assets are handled. The bill prevents dormant cryptocurrencies from being automatically liquidated and ensures they are held in their native form by a licensed custodian chosen by the state. This legislation has now moved to the California Senate for further consideration.
Who does this affect?
The bill impacts digital assets held by third-party custodians, such as centralized exchanges or banks, but not those held in self-hosted wallets. It applies only if digital assets show no account activity or contact for three years. The law will affect asset holders who do not regularly interact with their custodial accounts.
Why does this matter?
This bill could have a significant impact on the cryptocurrency market by offering stronger protections for digital assets, potentially influencing the behavior of investors. It sets a precedent for how unclaimed digital assets should be managed, emphasizing custodial accountability. The bill reflects an ongoing trend where individual states are establishing their own rules for handling digital assets amidst a lack of federal regulation.