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<div class="key-points-section"><strong>What to Know:</strong>
 <ul>
  <li>California enacts law shielding unclaimed crypto from liquidation.</li>
  <li>Crypto assets must remain in their native form.</li>
  <li>State requires thorough due diligence before asset transfer.</li>
 </ul>
</div>
<p>California has enacted laws AB 1052 and SB 822, safeguarding unclaimed cryptocurrencies in native form, prohibiting forced liquidation, and transferring assets after due diligence to the State Controller’s Office.</p>
<p>This legislation provides clarity for custodial accounts, aiming to protect consumer assets and ensuring consistency across different asset types, impacting centralized exchanges in California.</p>
<p>California has enacted laws AB 1052 and SB 822, preventing the forced liquidation of unclaimed cryptocurrency assets in the state.</p>
<p>The laws protect consumers by ensuring crypto assets stay in digital form until reclaimed, impacting exchanges and custodians.</p>
<h2 id="california-leads-with-unclaimed-crypto-protection-law">California Leads with Unclaimed Crypto Protection Law</h2>
<p>The California legislature passed the first-ever law ensuring unclaimed <a href="https://legiscan.com/CA/text/AB1052/id/3227563" rel="noopener noreferrer nofollow">cryptocurrency</a> is kept in its native form. This safeguards consumers' interests by preventing forced conversion to fiat. Sponsored by State Controller Malia M. Cohen and introduced by Senator Josh Becker, the law mandates custodial diligent asset care. <strong>Exchanges must report dormant accounts</strong> for state management.</p>
<h2 id="exchanges-must-retain-digital-form-under-new-law">Exchanges Must Retain Digital Form Under New Law</h2>
<p>The legislation affects <strong>custodians and centralized exchanges</strong>, demanding them to comply with keeping assets digital. It reassures consumers their crypto won't be liquidated without consent. Senator Becker remarked on the bill’s consumer protection nature, while its clarity dismisses past <a href="https://sjud.senate.ca.gov/system/files/2025-04/sb-822-becker-sjud-analysis.pdf" rel="noopener noreferrer nofollow">confusion in crypto custody</a> laws, ensuring consistent cryptocurrency treatment.</p>
<blockquote>
 Josh Becker, Senator, California - “SB 822 updates California’s Unclaimed Property Law to make [coverage of virtual currencies] explicit. ... [It] helps clear up any confusion and ensures virtual currencies are treated consistently.”
</blockquote>
<h2 id="california-law-aligns-modern-crypto-with-traditional-assets">California Law Aligns Modern Crypto with Traditional Assets</h2>
<p>The move aligns with past property laws, where traditional assets were safeguarded similarly. The crypto adaptation <a href="https://legiscan.com/CA/text/SB822/id/3189109" rel="noopener noreferrer nofollow">reflects asset modernization</a>, not drastic policy shifts. Compliance expert <strong>Joe Ciccolo noted the significance</strong> of this consumer-friendly approach, suggesting a positive impact on how digital assets are conserved on behalf of California residents.</p>
<blockquote>
 Joe Ciccolo, Compliance Analyst – “This legislation ensures digital assets left dormant in custodial accounts are held in their native form and are not forced to liquidate, bringing much-needed clarity.”
</blockquote>
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    <td><em><strong>Disclaimer</strong>: The information on this <a href="https://bitcoininfonews.com/" rel="noopener noreferrer nofollow">website</a> is for informational purposes only and does not constitute financial or investment advice. Cryptocurrency markets are volatile, and investing involves risk. Always do your own research and consult a financial advisor.</em></td>
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California Safeguards Unclaimed Crypto from Forced Liquidation

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