California Assembly Passes Bill to Claim Custody of Inactive Crypto Assets

California lawmakers unanimously approved AB 1052, a bill granting the state authority to take custody of cryptocurrencies left inactive on exchanges for three years. The legislation now moves to the Senate, where it could face amendments or rejection.

Unlike traditional unclaimed property protocols, the bill prohibits California from liquidating dormant crypto holdings. Instead, the state must safeguard assets for potential future reclamation by owners. Critics argue the measure reflects fundamental misunderstandings about blockchain asset custody.

The proposal defines account activity narrowly—requiring either transactions or electronic access within the three-year window. This provision mirrors existing unclaimed property statutes governing bank accounts and SAFE deposit boxes.