California SB 822 unclaimed crypto law prevents the state from forcibly liquidating dormant digital assets; custodians must remit cryptocurrencies like Bitcoin and Ethereum in their native form to the California State Controller, who will appoint licensed custodians to safeguard them and may only convert to fiat after 18–20 months if unclaimed.
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California SB 822 stops automatic liquidation of unclaimed crypto;
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Custodians must remit dormant assets in native form after three years of inactivity.
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The Controller may appoint licensed custodians and can convert assets to fiat only 18–20 months after reporting if no claimant appears.
California SB 822 unclaimed crypto law protects dormant digital assets from forced liquidation—learn how custodians, the State Controller, and owners are affected. Read COINOTAG’s update.
By COINOTAG | Published: 2025-10-14 | Updated: 2025-10-14
What is California’s SB 822 on unclaimed cryptocurrency?
California SB 822 unclaimed crypto law amends the state’s Unclaimed Property Law to classify digital assets as intangible property and requires custodians to remit dormant cryptocurrencies in their original form to the California State Controller, rather than selling them immediately. The change clarifies custodial obligations and protects owners from inadvertent liquidation.
How will custodians and the Controller handle dormant crypto under SB 822?
Under SB 822, custodians such as exchanges and wallet providers must transfer accounts that show three years of inactivity or failed contact attempts to the California State Controller’s Office in native crypto form. The Controller can appoint one or more licensed custodians to manage and secure the assets under state standards. If no claimant comes forward, the Controller is authorized to sell those assets to fiat no sooner than 18 months and no later than 20 months after the unclaimed report filing. This framework aims to balance asset preservation with practical reconciliation timelines.
Which assets and stakeholders are affected?
The bill explicitly references digital assets including Bitcoin and Ethereum as examples of property covered by the amendment. Affected stakeholders include custodial platforms, self-custody service providers, the California State Controller’s Office, and account holders. Industry responses have included public statements from major custodians and legal officers. For example, Paul Grewal, chief legal officer of Coinbase, publicly thanked Governor Gavin Newsom for signing the bill and urged broader policy alignment among states and federal regulators. Senator Josh Becker sponsored the legislation and framed it as modernization of existing property law to accommodate digital assets.
Frequently Asked Questions
How can a Californian reclaim unclaimed cryptocurrency under SB 822?
Owners should contact the California State Controller’s Office and follow its unclaimed property reclamation procedures, providing proof of ownership and identity. Custodians are required to remit assets in native form, and a licensed custodian appointed by the Controller will hold assets until a verified claimant is identified and the property is returned.
Can the state sell my dormant crypto immediately?
No. Under SB 822, the Controller may not sell remitted assets immediately. The statute specifies a sale window no sooner than 18 months and no later than 20 months after the report filing if no claimant appears. This delay is intended to give rightful owners time to reclaim property.
Key Takeaways
- Legal protection: SB 822 prevents automatic forced liquidation of dormant crypto and classifies digital assets as intangible property under California law.
- Custodian obligations: Exchanges and wallet providers must remit dormant accounts after three years of inactivity in native asset form to the State Controller.
- Controller authority: The California State Controller can appoint licensed custodians and may convert assets to fiat only after an 18–20 month waiting period if no claimant appears.
Conclusion
California’s SB 822 establishes a clear, protective framework for unclaimed digital assets, ensuring custodians remit cryptocurrencies like Bitcoin and Ethereum in native form and giving the California State Controller structured authority to safeguard and, if necessary, orderly convert assets after a defined period. The law aligns state property rules with modern digital finance and provides Californians a defined path to reclaim assets. COINOTAG will continue to monitor implementation, Controller guidance, and industry compliance as custodial practices evolve.
Author: COINOTAG. Sources referenced as plain text: California State Controller’s Office, official text of SB 822, statement by Paul Grewal (Coinbase), Senator Josh Becker, TechNet commentary, California legislative records.
