California lawmakers have passed bill AB-1052, which grants the state the authority to seize crypto assets that have shown no activity from their owners for three years if they are held on exchanges. This new measure has sparked lively discussions in the crypto community, particularly regarding the risks to the decentralized nature of digital currencies.
This is reported by Finway
Essence of the Bill and Guarantees for Owners
The document details that if a cryptocurrency owner has not conducted any transactions or logged into their account for three years, such assets are deemed “unclaimed” and may be transferred to the state. At the same time, the assets will not be converted into fiat currency or sold — they will remain in their original form. An owner who approaches the state with proof of ownership will be able to reclaim their cryptocurrency.
“When your Bitcoin is transferred to the state as unclaimed property from an exchange, it remains in the form of Bitcoin and is not sold. You will be able to get it back in the form of Bitcoin from the state of California,” explained Peterson.
AB-1052 received unanimous support in the California State Assembly (78 votes in favor) and is awaiting consideration by the Senate. The bill expands existing rules regarding unclaimed property (which cover bank accounts, safe deposit boxes, etc.) to include digital assets. The state does not gain access to private keys or wallets — only to assets that are on exchanges, and only until the owner makes a claim.
Expert Opinions and Reactions from the Crypto Community
Representatives of the crypto community have criticized the initiative, pointing to the potential threat to the decentralized nature of digital currencies. However, legal experts emphasize that similar practices have long existed in most U.S. states, where exchanges are required to transfer unclaimed assets in accordance with the law.
“Most states have unclaimed property laws, and exchanges comply with them. Assets are returned to the owner as soon as they approach the state,” wrote crypto lawyer Hailey Lennon.
Experts note that keeping cryptocurrency in its original form allows owners to benefit from potential increases in the asset’s value, unlike situations where property is immediately converted into fiat.
Peterson also emphasized: “No one touches your keys or wallet. AB 1052 states: keep the assets as they are.” The consideration of the bill in the California Senate could lead to either its approval or amendments. The bill does not require the transfer of private keys or wallets to the state, but only regulates the storage of unclaimed assets on exchanges.