California Governor Gavin Newsom signed Senate Bill No. 822, marking the first U.S. state to enact legislation safeguarding unclaimed digital assets. The new law ensures that cryptocurrency remains in its original form when transferred into state custody, preventing automatic conversion to cash. This bill expands California’s unclaimed property laws to include digital assets, classifying them as intangible property and outlining their management guidelines. Users can be assured of having a degree of control over their digital assets without needing full address details, which only needs to identify the state in question. The law mandates exchanges and custodians to inform users six to twelve months before unclaimed crypto is handed over to the state. These notices provide sufficient time for users to recover their assets if they choose. Exchanges must then secure key access within 60 days to transfer the assets safely. This landmark decision from California comes just days after a significant market crash on October 10th, which wiped out more than $19 billion in the crypto industry. [More information about the market crash can be found here: [Link to relevant article]]. The bill has been met with positive response from industry experts such as Joe Ciccolo of the California Blockchain Advocacy Coalition who praised its earlier versions for avoiding forced liquidations of customers’ assets, highlighting the potential for unwanted taxable events without consent. Beyond crypto legislation, Governor Newsom also emphasized the need for accountability in AI development and the responsibility of those creating or using this technology to prevent harm. California further passed new tech safety bills addressing deepfakes, social media risks, and cybersecurity coordination. This action establishes a new standard for how states manage digital assets, similar to real-world money, building trust among users and setting the stage for a more digitized future. [More information about California’s recent tech legislation can be found here: [Link to relevant article]].