California Protects Crypto Owners: New Law Prevents Automatic Liquidation, Preserves Assets for 18 Months

California Governor Gavin Newsom signed a groundbreaking law that significantly impacts the handling of unclaimed cryptocurrency held by state residents on exchanges and custodial platforms. The new legislation prevents automatic liquidation of dormant digital assets, requiring the state to hold them in their original form for at least 18 months after being reported as unclaimed. Previously, California’s unclaimed property system was unclear about how to treat cryptocurrencies like Bitcoin and Ethereum.