SACRAMENTO, CA – Governor Gavin Newsom has signed into law legislation that modernizes California’s Unclaimed Property Law by clearly defining how virtual currencies like Bitcoin and Ethereum are to be treated. SB 822 ensures that abandoned virtual currencies are handled just like stocks—safeguarded by the State Controller’s Office until they can be reunited with their rightful owners.
“Virtual currency is an increasingly common and valuable part of people’s financial lives, and California’s laws need to reflect that reality,” said Senator Josh Becker (D-Menlo Park), author of SB 822. “With this new law, our unclaimed property program keeps pace with innovation and protects consumers, ensures fairness to the system, and reaffirms California’s role as a national leader in technology and forward-thinking policy.”
“I want to thank Governor Gavin Newsom for signing Senate Bill 822 into law and Senator Josh Becker for his leadership in advancing thoughtful policy that strengthens public trust and promotes responsible financial stewardship," stated Controller Malia M. Cohen. “SB 822 is a timely and forward-looking measure that modernizes California’s unclaimed property law by ensuring virtual currencies are treated like other financial assets. This legislation empowers virtual currency holders to properly report their assets to the state, enhancing transparency and accountability.”
Under California law, financial assets that go unclaimed for three years must be turned over to the State Controller’s Office, which safeguards them while attempting to contact their rightful owners. While the law already includes financial property such as bank accounts, stocks, and insurance policies, it was previously silent on how virtual currency should be handled, leading to confusion and underreporting.
SB 822 addresses that gap by defining virtual currency for the purposes of unclaimed property law and requiring holders of virtual currencies to attempt contact with the owner after three years of inactivity. The law mandates escheatment of unclaimed crypto assets to the Controller’s Office and directs the Controller’s Office to manage virtual currencies similarly to stocks, holding the asset for 18 to 24 months before liquidating it and retaining the cash value in perpetuity for the rightful owner.
SB 822 takes effect on January 1, 2026.