California’s State Assembly has passed a major bill that seeks to regulate cryptocurrency payments and unclaimed digital assets, potentially setting a new precedent in state-level crypto oversight.
Assembly Bill 1052 (AB 1052), which was approved unanimously in a 78-0 vote on June 3, addresses both crypto payments and dormant exchange accounts.
Unclaimed Crypto Could Become State Property
One of the most significant provisions of AB 1052 is that it would bring crypto under California’s unclaimed property laws.
Under the bill, if a user has not accessed or transacted within their crypto exchange account for three years, the state could claim possession of those assets.
Any form of activity—like logging into the account, making a transaction, or contacting the exchange—would count as maintaining ownership.
If no such activity is recorded, the crypto would be transferred to a licensed state custodian.
“What it does is update the unclaimed property laws so when your Bitcoin is turned over as unclaimed property from an exchange, it stays in the form of Bitcoin rather than being liquidated,” said Eric Peterson of the Satoshi Action Fund.
Bill Includes Legal Framework for Crypto Payments
AB 1052 would also allow individuals and businesses in California to legally accept cryptocurrency as a form of payment for goods, services, and private transactions.
This move could encourage broader adoption of digital currencies for everyday use.
If the bill becomes law, it will go into effect on July 1, 2026.
It would require all digital asset businesses to obtain a license from the Department of Financial Protection and Innovation, unless they qualify for an exemption.
Reactions from the Crypto Community
The proposal has generated a mix of praise and criticism from crypto users online.
Some have accused the bill of government overreach, while others have defended it as a necessary regulatory update.
“There have been some misunderstandings,” Peterson noted.
“Instead of selling your Bitcoin after 3 years of inactivity, custodians must transfer your actual BTC to a licensed custodian selected by the state.”
Hailey Lennon, former regulatory counsel at Coinbase, pointed out that similar laws already exist in other U.S. states.
“Most states have unclaimed property laws that exchanges comply with. It’s returned to the owner when the owner reaches out to the state,” she said.
Dennis Porter, founder of the Satoshi Action Fund, added that many states face challenges with outdated unclaimed property processes.
The bill now moves to the California Senate, where it may be amended or approved for signing into law by Governor Gavin Newsom.