California Becomes First State to Protect Unclaimed Crypto from Forced Liquidation

A groundbreaking law in California has set a precedent for the future of digital asset ownership, making it the first US state to protect unclaimed cryptocurrency from forced liquidation. Senate Bill 822, signed into law by Governor Gavin Newsom in September 2025, introduces a comprehensive system for managing inactive digital assets. This legislation mandates that unclaimed cryptocurrencies like Bitcoin and Ethereum remain in their original form instead of being converted into cash. The new law applies to all cryptocurrency holdings held within inactive wallets or exchange accounts that haven’t been accessed for three years.