Landmark California Crypto Bill Passes Assembly: Unclaimed Assets & Payments Addressed

Big news from the Golden State! California is making significant moves in the world of digital assets. The recent passage of a crucial California crypto bill, AB 1052, by the State Assembly is set to impact how unclaimed cryptocurrency is handled and pave the way for wider crypto payments across the state. If you hold crypto or plan to use it for transactions in California, this development is certainly worth paying attention to.

What Does California’s AB 1052 Bill Propose?

On June 3, California’s lower house approved Assembly Bill 1052 with an overwhelming 78-0 vote. This bill has two primary focuses:

• **Unclaimed Property:** It brings digital assets under the state’s unclaimed property laws. If a user hasn’t shown ‘ownership interest’ in their exchange account for three years, the state can take possession of the crypto.
• **Merchant Payments:** It explicitly allows individuals and businesses in California to accept cryptocurrency as payment for goods, services, and in private transactions.

The bill now proceeds to the California Senate for further consideration. If enacted, it’s slated to take effect on July 1, 2026.

Understanding the Rules for Unclaimed Crypto in California

One of the most debated aspects of the bill concerns how it treats unclaimed crypto. Under AB 1052, if you haven’t performed an ‘act of ownership interest’ on your exchange account for three years, the assets could be transferred to the state. What constitutes an ‘act of ownership interest’? The bill specifies actions such as buying, selling, depositing, withdrawing, accessing the account, or any other action that shows you know the property exists.

However, a key clarification from proponents like Eric Peterson of the Satoshi Action Fund addresses a common misconception. He explains that the bill is designed to update existing unclaimed property laws specifically for digital assets. Instead of exchanges liquidating your Bitcoin (BTC) or other crypto into fiat currency after three years of inactivity, they must transfer the native digital asset to a state-selected licensed custodian. This means you can reclaim your actual BTC or other crypto from the state, rather than receiving a fiat equivalent based on a past price.

This approach is seen as an improvement over previous potential scenarios where crypto could have been liquidated. It aligns California’s laws for digital assets with similar existing rules for inactive bank and brokerage accounts. Importantly, these rules only apply to crypto held on exchanges or with custodians; self-custodied crypto is not affected.

Boosting Crypto Payments in California

Beyond unclaimed property, AB 1052 explicitly supports the use of crypto payments within California. This part of the bill clarifies the legality of using digital assets for commercial and private transactions. For businesses looking to accept crypto, the law would require them to be licensed by the Department of Financial Protection and Innovation, unless an exemption applies.

This provision could potentially boost crypto adoption by providing a clearer legal framework for businesses and consumers to transact using digital currencies across the state.

Expert Views on California’s Crypto Regulation

Opinions on AB 1052 have been varied online, with some expressing concern over state overreach. However, those involved in the bill’s drafting and familiar with existing regulations offer a different perspective.

Eric Peterson emphasizes that the bill’s primary goal for unclaimed property is to prevent forced liquidation and allow owners to reclaim their native digital assets. Dennis Porter, founder of the Satoshi Action Fund, notes that many states have existing, less favorable unclaimed property processes for crypto that need similar updates.

Hailey Lennon, a former regulatory counsel, also points out that unclaimed property laws are standard across states and exchanges already have processes to comply. The key difference here is California’s proposed method for handling the digital asset itself.

What This Means Going Forward

The passage of AB 1052 through the California Assembly is a significant step in clarifying the legal status of digital assets in the state, particularly regarding unclaimed property and crypto payments. While it still needs to pass the Senate and potentially be signed by the Governor, the Assembly’s unanimous vote suggests strong support.

For California residents and businesses, this bill aims to provide more certainty regarding digital asset ownership and use. The move to hold unclaimed crypto in its native form is a notable win for digital asset holders, preserving the potential future value of their assets should they need to reclaim them.

Summary: A Step Towards Clearer Crypto Rules in California

California’s Assembly has advanced AB 1052, a bill addressing unclaimed crypto property and formalizing the acceptance of crypto payments. The bill seeks to ensure that unclaimed digital assets held on exchanges are transferred to the state in their native form, preventing liquidation and allowing owners to reclaim the specific cryptocurrency. It also provides a legal basis for businesses and individuals to use crypto for transactions, though licensing requirements will apply for businesses. While moving to the Senate, this bill represents a significant development in California’s approach to crypto regulation and adoption.