Imagine waking up one morning to discover your carefully held Bitcoin stash—untouched for years—is now under the custody of the State of California. It may sound dystopian, but it’s a scenario that’s inching closer to reality. Under Assembly Bill (AB) 1052, which recently passed the California State Assembly with unanimous support and is now being considered by the Senate, any cryptocurrency left inactive in a custodial account for three years could be labeled “unclaimed property” and transferred to state control. Is this an alarming case of government overreach, or a modern update to outdated property laws? Read on to explore the far-reaching implications of this controversial proposal.
California Bill Targets Dormant Crypto in Sweeping Property Law Update
In a bold move to modernize unclaimed property laws, California lawmakers have advanced AB 1052—a bill that would allow the state to seize dormant cryptocurrency assets held on centralized exchanges after three years of inactivity.
The legislation passed unanimously in the California State Assembly in June 2025 with a 78–0 vote and is now headed to the Senate for further review, where potential amendments may still be introduced before final approval.
Introduced by Democratic Assemblymember Avelino Valencia, the bill aims to bring digital assets like Bitcoin under the same regulatory umbrella as long-forgotten bank accounts, unclaimed paychecks, and tax refunds. If enacted, the law would require crypto holders to engage with their custodial exchange accounts at least once every three years to avoid having their assets classified as “unclaimed property” and subsequently seized by the state.
Can You Reclaim Seized Crypto? Here’s What the California Bill Says
A crucial question for any crypto owner facing California’s new unclaimed property law is: what happens to your digital assets once the state takes custody? The good news is, the legislation includes significant safeguards for crypto holders, ensuring that your assets aren’t simply liquidated or lost forever…