TechFlow news, October 14 — According to Decrypt, California Governor Gavin Newsom signed SB 822 into law, making California the first state to explicitly protect unclaimed cryptocurrency from forced liquidation, ensuring digital assets are preserved in their native form rather than converted into cash before being transferred to state custody.
Drafted by Senator Josh Becker, the bill brings digital financial assets such as Bitcoin and Ethereum under California’s Unclaimed Property Law framework, granting them the same legal protections as bank accounts and securities. The law requires holders to notify asset owners 6–12 months before transfer and mandates that exact asset types, private keys, and quantities be transferred to the state controller’s cryptocurrency custodian within 30 days after the final reporting date.
The state controller may convert unclaimed cryptocurrency into fiat currency 18–20 months after filing, and valid claimants can recover either the original assets or the proceeds from their sale. The law prevents the creation of taxable events without users’ knowledge and establishes a clear regulatory framework for handling digital assets.
