California shields unclaimed crypto from forced liquidation
California enacted a law to keep unclaimed crypto in its native form under state custody, blocking automatic liquidation during escheat.
California enacted SB 822 updating its Unclaimed Property Law to cover digital assets and bar forced liquidation of unclaimed crypto before transfer to state custody. Current as of 14 Oct 2025.
What the law does
Holders must remit unclaimed crypto to the State Controller or a designated custodian in kind. Default custody is the native asset, not cash. The Controller can convert later under defined conditions. Qualified custodians must meet security, segregation, and audit standards.
Process and timelines
Before escheat, holders must attempt owner contact and provide notice within the statutory window. After…
