California has moved forward with Assembly Bill (AB) 1052, a new piece of legislation that could significantly impact cryptocurrency users, exchanges, and businesses. The bill, passed unanimously (78-0) by the California State Assembly on June 3, aims to update unclaimed property laws to include digital assets and legalize the use of crypto for payments.
Key Provisions of AB 1052
The bill introduces two major changes:
- Unclaimed Crypto Property: If a user’s crypto exchange account remains inactive for three years, California can claim the funds as unclaimed property.
- Acts of ownership include logging in, making a transaction, or taking any action indicating awareness of the account’s existence.
- Crucially, crypto will no longer be liquidated into dollars. Instead, it will be retained in native form (e.g., BTC, ETH) with a state-licensed custodian.
- Legal Crypto Payments: The bill explicitly allows individuals and businesses to accept cryptocurrency for goods, services, or private transactions across the state.
If signed into law, these changes would take effect on July 1, 2026. Unlicensed digital asset businesses would be prohibited from operating in California without a state license issued by the Department of Financial Protection and Innovation (DFPI).
Community Response: Divided but Clarifying
The crypto community’s reaction has been mixed, with online debates labeling the bill as overreach, while others see it as a modernization effort.
Eric Peterson, policy director at the Satoshi Action Fund and contributor to the bill, clarified:
“This law ensures your Bitcoin stays Bitcoin when unclaimed—not liquidated into fiat. You can reclaim it from the state in its original form.“
He emphasized that the bill mirrors existing laws for dormant bank and brokerage accounts and does not affect self-custodied wallets.
Hailey Lennon, former regulatory counsel at Coinbase, added:
“Most states already require exchanges to report unclaimed property. The difference here is keeping it in crypto.“
What’s Next?
The bill now proceeds to the California Senate, where it may be revised, passed, or rejected. If approved, it will be sent to Governor Gavin Newsom for final signature or veto.
AB 1052 may set a precedent for how states treat idle digital assets and crypto commerce. While debate continues, the bill signals California’s evolving approach to crypto regulation and adoption.