California Advances Bill to Regulate Unclaimed Crypto

@Paul, this matter is related to deep market knowledge and industry coverage, so I’m assigning it to you.

Key Event: California's lower house has passed Assembly Bill 1052, which will regulate crypto payments and enable the state to take possession of idle crypto holdings from exchanges if not accessed for three years. The bill, now moving to the Senate, mandates that unclaimed crypto remains in its native form, rather than being liquidated, and updates the unclaimed property laws for digital assets.

OK, @Paul, here's the information regarding California's Assembly Bill 1052.

According to Cointelegraph on June 5, 2025, California's lower house, the State Assembly, passed Assembly Bill (AB) 1052 on June 3, 2025, with a unanimous 78-0 vote. This bill aims to regulate crypto payments and would allow the state to take possession of cryptocurrency holdings from exchanges if an owner has not accessed their account or performed an "act of ownership interest" for three years. Such acts include transactions like buying or selling, depositing or withdrawing, accessing the account, or any other action demonstrating the owner's awareness of the property.

A key aspect of the bill is that it mandates unclaimed crypto to be kept in its native form by a licensed custodian selected by the state, rather than being liquidated into fiat currency. This means owners can reclaim their crypto from the state in its original form, such as Bitcoin. The bill also includes provisions to allow individuals and businesses in California to accept crypto as payment for goods and services and for use in private transactions.

The bill will now proceed to the California Senate for consideration, where it could be amended, rejected, or passed to Governor Gavin Newsom for signing into law or veto. If enacted, the law would take effect on July 1, 2026. From that date, anyone engaging in digital financial asset business activity in California, unless exempt, would need a license from the Department of Financial Protection and Innovation (DFPI).

Reactions to AB 1052 have been mixed. Some critics on social media have called it an overreach of power. However, proponents, like Eric Peterson from the Satoshi Action Fund who helped draft an earlier version of the law, argue that the bill primarily updates existing unclaimed property laws to accommodate cryptocurrencies and prevent their liquidation. Peterson and others have clarified that similar laws are already in place for inactive bank and brokerage accounts, and the new law would not affect users who self-custody their crypto. Hailey Lennon, a former regulatory counsel at Coinbase, also noted that most states have similar unclaimed property laws that exchanges already comply with.

This bill, AB 1052, is complemented by another piece of legislation, AB 1180, which also passed the State Assembly and focuses on allowing state agencies to accept crypto for payments. AB 1180 proposes a pilot program for this to run until January 1, 2031, with full implementation aimed for July 1, 2026.

The information was reported by outlets including Cointelegraph, AInvest, and Infomarine.net on June 4 and June 5, 2025.

@Paul, focus on the key event that California's Assembly Bill (AB) 1052 was unanimously passed by the State Assembly. Clearly explain the bill's primary purpose: to regulate crypto payments and manage unclaimed crypto holdings by the state. Emphasize that unclaimed crypto must be kept in its native form and that the bill includes provisions for businesses and individuals to accept crypto payments. Ensure you cover the next steps: its consideration by the California Senate and potential enactment date of July 1, 2026. Avoid redundant details and keep the explanation clear and concise, highlighting the mixed reactions and the relation to AB 1180 for a comprehensive understanding.

California Advances Bill to Regulate Unclaimed Crypto

• California's lower house unanimously passed Assembly Bill 1052.
• The bill regulates crypto payments and requires unclaimed crypto holdings to remain in their native form.

On June 5, 2025, Cointelegraph reported that California's State Assembly passed Assembly Bill (AB) 1052 to regulate cryptocurrency payments and manage unclaimed crypto holdings. The Assembly passed the bill unanimously with a 78-0 vote. The bill mandates the state to take possession of cryptocurrency from exchanges if the owner does not access their account or perform ownership actions for three years.

This legislation requires unclaimed cryptocurrency to be kept in its native form by a state-selected, licensed custodian, rather than being liquidated into fiat currency. Owners can reclaim their crypto in its original form, such as Bitcoin. The bill also includes provisions allowing businesses and individuals to use cryptocurrency for payments in transactions within the state.

AB 1052 will now proceed to the California Senate for consideration, where it may be amended, rejected, or passed to Governor Gavin Newsom for signing into law or veto. If enacted, the law would take effect on July 1, 2026. From that date, any entity engaging in digital financial asset business activities in California, unless exempt, would need a license from the Department of Financial Protection and Innovation (DFPI).

Reactions to the bill have been mixed. Some critics on social media have called it an overreach of power. However, supporters such as Eric Peterson from the Satoshi Action Fund, who helped draft an earlier version of the bill, say it updates existing unclaimed property laws to include cryptocurrencies, thus preventing their liquidation. Peterson and others have clarified that similar laws are already in place for inactive bank and brokerage accounts, and the new law will not affect users who self-custody their crypto. Hailey Lennon, a former regulatory counsel at Coinbase, noted that most states have similar unclaimed property laws that exchanges already comply with.

In addition to AB 1052, another related bill, AB 1180, also passed the State Assembly. AB 1180 proposes allowing state agencies to accept cryptocurrency payments and includes a pilot program running until January 1, 2031, with full implementation slated for July 1, 2026.

As of June 5, 2025, 08:18 UTC, Bitcoin (BTC) is trading at $104,591.54, with a 0.797% decrease in the last 24 hours.