California Advances Crypto Protection with Unclaimed Property Law

Positive news for the cryptocurrency industry has emerged as California officially passed a bill to protect unclaimed digital assets. The move, led by Governor Gavin Newsom, incorporates cryptocurrencies into existing unclaimed property laws. 3-year dormancy rules are now in effect for unmanaged virtual assets like Bitcoin and Ethereum (ETH). This signifies a shift from forced liquidations upon inactivity. Instead, dormant crypto is transferred to the State Auditor’s Office after 3 years of non-use. California has set itself apart by establishing a robust legal framework protecting cryptocurrency holders’ rights. This move aligns with established practices in other states and the SEC, offering a degree of protection for users.