California will no longer liquidate unclaimed crypto

California Governor Gavin Newsom has signed groundbreaking Senate Bill 822 (SB 822) into law, making California the first U.S. state to protect unclaimed cryptocurrency from government liquidation. This historic crypto legislation shields digital assets including Bitcoin, Ethereum, and other blockchain-based tokens from forced sale under the state's Unclaimed Property Law, originally enacted in the 1950s.

The new cryptocurrency protection law represents a major victory for digital asset holders and the broader crypto community. Previously, California's outdated unclaimed property regulations threatened to liquidate dormant crypto holdings, potentially causing significant losses for investors and undermining blockchain technology adoption.

This landmark crypto legislation could trigger similar protective measures across other states, strengthening the regulatory framework for cryptocurrency and DeFi assets nationwide. The bill addresses growing concerns about government overreach in the digital currency space while acknowledging Bitcoin and cryptocurrency as legitimate financial instruments deserving legal protection.

California's progressive stance on cryptocurrency regulation may attract blockchain companies and crypto investors to the state, potentially boosting adoption of digital assets and decentralized finance (DeFi) platforms while setting important legal precedents for crypto property rights.