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California Enacts First Law Protecting Unclaimed Cryptocurrency from Forced Liquidation

California Enacts First Law Protecting Unclaimed Cryptocurrency from Forced Liquidation

Governor Gavin Newsom has signed SB 822, classifying digital assets as intangible property under California’s Unclaimed Property Law and ensuring they remain in native form before transfer to state custody.

BTC

Fact Check
Multiple recent news sources (Decrypt, Yahoo Finance) directly corroborate that California's governor signed a law which protects unclaimed cryptocurrency from forced liquidation by preserving the assets in their native form. While the evidence strongly supports the core claim, it doesn't provide a comprehensive comparison to all other state laws to definitively prove it is the 'first' of its kind, which slightly reduces the confidence score from a perfect 1.0.
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Summary

California Governor Gavin Newsom signed Senate Bill 822, officially making California the first U.S. state to protect unclaimed cryptocurrency from forced liquidation. The legislation updates the Unclaimed Property Law to classify digital assets such as Bitcoin as intangible property, requiring they be maintained in their original form before being transferred to state custody. This measure ensures unclaimed cryptocurrencies are treated similarly to dormant bank accounts or securities, addressing prior gaps in handling inactive digital asset accounts.

Terms & Concepts
  • Unclaimed Cryptocurrency: Digital assets that remain inactive or unclaimed over a certain period, potentially subject to state custody under unclaimed property laws.
  • Unclaimed Property Law: A legal framework governing the transfer of unclaimed or abandoned financial assets to state custody until reclaimed by the rightful owner.
  • Digital Assets: Electronic representations of value or rights, such as cryptocurrencies, that are stored and transferred using blockchain technology.