California Passes Bill to Oversee Unclaimed Cryptocurrency and Merchants’ Payments
California is moving forward with historic legislation to oversee virtual assets. The Assembly passed Assembly Bill 1052 (AB 1052), which recasts the handling of unclaimed cryptocurrency and enables businesses to accept payment in cryptocurrency.
The bill passed unanimously on a 78-0 vote without any opposition on June 3 and will now proceed to the California Senate for deliberation.
Crypto Left Untouched for 3 Years Can Be Sent to the State
One of the main provisions of AB 1052 applies unclaimed property law to crypto. If an exchange account is inactive for three years—no transactions, logins, or other activity by the owner—the crypto will be transferred to the state.
Unlike previous policies in which the assets can be cashed out, the bill requires digital assets to be stored in their original form. Eric Peterson of the Satoshi Action Fund noted that Bitcoin, for example, will not be cashed out but held securely until it is redeemed.
“Instead of cashing out your Bitcoin after 3 years of inactivity, custodians must forward your real BTC to a state-authorized custodian of your preference,” Peterson said.
Legitimizes Crypto Payments for Goods and Services
Probably most significant among the bill’s provisions is its allowance for companies and individuals to accept cryptocurrency as payment for goods and services. This legitimates the use of digital assets in private transactions and places California in line with other crypto-friendly states.
Mixed Feedback from the Crypto Community
While the bill passed the Assembly unanimously, there has been polarized public opinion. Critics argue that the action is too empowering to the state, while other critics say the law does not do anything more than it currently does with unclaimed property procedures.
Peterson responded to critics by saying the law is created to protect holders, not steal their assets. “There’s a lot of misunderstanding,” he insisted, again saying that the state would not sell off the assets as many expect.
Hailey Lennon, erstwhile Coinbase regulatory counsel, added some background:
“Most states have unclaimed property laws that exchanges follow. It’s returned to the owner when the owner reaches out to the state.”
What’s Next?
If approved by the Senate and signed into law by Governor Gavin Newsom, AB 1052 will become effective on July 1, 2026. It will also require all those involved in digital financial asset business to be licensed by California’s Department of Financial Protection and Innovation (DFPI).
While governments grapple with how to integrate crypto into existing financial systems, AB 1052 offers a blueprint for integrating custodial digital assets into governance while fostering greater adoption of crypto in commerce.
