TechFlow news, on June 5, according to Decrypt, the California State Assembly passed AB-1052 unanimously with a 78-0 vote on Tuesday. The bill stipulates that if a cryptocurrency holder does not demonstrate "ownership interest" in their assets for three consecutive years, the state government may take custody of these "unclaimed" digital assets. "Ownership activities" include actions such as conducting transactions or electronically accessing an account.
Contrary to concerns raised on social media, supporters of the bill emphasize that seized crypto assets will be held by custodians in their original form rather than being liquidated by the state government. Holders can reclaim their assets at any time, avoiding the risk of forced sales under unfavorable market conditions.
The bill essentially brings cryptocurrency under the same unclaimed property law framework that applies to traditional assets such as bank accounts and safe deposit boxes. The bill has been submitted to the California State Senate for further consideration and may be amended, rejected, or passed as-is.
