On Tuesday, the California House passed bill AB 1052 with a unanimous vote of 78-0, granting the state government the authority to hold crypto assets without a recipient for up to 3 years at exchanges. This move has sparked mixed reactions on social media, with some people arguing that the specific content of the bill is being misunderstood.
The bill will now be sent to the Senate for consideration, where it may be amended, rejected, or signed into law without changes. If enacted, crypto assets will be governed by the 'unclaimed property' law, similar to current regulations for unclaimed bank accounts or safes.
However, the bill does not allow the state to liquidate these crypto assets. Instead, the assets will be held by a trustee agency, and users can come to reclaim them later.
AB 1052: The bill aims to regulate digital payments to protect consumers
According to the content of the bill, digital asset owners must demonstrate 'ownership behavior' at least once every 3 years – for example, by making a transaction or logging into their account – to avoid having their assets declared unclaimed.
California's unclaimed property law is designed to protect consumers – allowing them to reclaim assets from the state government without incurring fees.
Mr. Eric Peterson – the author of AB 1052 and currently the Policy Director at Satoshi Action Fund – stated that the bill only applies to third-party exchanges and does not affect personal wallets. He also emphasized that under current law, if an exchange cannot contact a customer for over 3 years, they can liquidate the user's assets.
Peterson further explains: the bill aims to prevent exchanges from unilaterally selling crypto for cash before transferring it to the state. Instead, if transferred to the state government, the assets will be held in the form of Bitcoin – to ensure that value is not lost.
He argues that because crypto (like Bitcoin) can increase in value over time, when users reclaim their assets, they will benefit from this growth instead of receiving a fixed amount of cash at the time of liquidation.
Also supporting this view, Ms. Hailey Lennon – legal counsel at Coinbase – stated that most states in the U.S. already have similar laws. When users reconnect with the exchange, their assets will be returned.
AB 1180: The bill supplements AB 1052, paving the way for payments in crypto
Another bill – AB 1180 – was also just passed by the California House with a vote of 68-0 in its third reading on June 2. This bill requires the Department of Financial Protection and Innovation (DFPI) to develop regulations allowing state funds and transactions under the Digital Financial Assets Law (DFAL) to be paid in crypto.
DFPI will be responsible for monitoring all transactions related to crypto, addressing legal and technical issues, and reporting before 2028. This agency is also tasked with overseeing the licensing system and ensuring consumer protection as well as promoting financial innovation.
AB 1052 also affirms that the use of digital assets is legal in private transactions, and prevents public authorities from imposing taxes or restrictions on the use of crypto as a payment method.
Senator Ben Allen expressed support for giving more attention to the crypto sector in California.
Other states such as Colorado, Florida, and Louisiana are also leading in the integration of blockchain. Louisiana has begun accepting public service payments in crypto since September 2024. Mr. John Fleming – the Treasurer of Louisiana – confirmed that residents can use digital currency to pay for government services.
On the international front, Dubai is currently a highlight in integrating crypto into its economy. In May, the Dubai Financial Department signed an agreement with Crypto.com to allow residents to pay public service fees with digital currency.