Setting the Record Straight on California’s AB 1052 and Unclaimed Property in the Crypto Era
By Joe Ciccolo
California’s AB 1052 has stirred confusion and concern in some corners of the crypto community, largely due to misconceptions about the intent and function of unclaimed property laws. Some fear that the legislation opens the door to government seizure or control of digital assets. But that narrative misses the mark. In reality, AB 1052 is a thoughtful modernization of existing law—one that treats crypto no differently than traditional financial products and, importantly, protects consumer value by preserving assets in their native digital form.
Let’s take a step back. Unclaimed property laws are nothing new. All 50 states have long required financial institutions—whether traditional banks, brokerages, or now crypto exchanges—to turn over assets that have been abandoned or forgotten by customers after a set dormancy period. These laws exist to safeguard consumer property and ensure individuals, or their rightful heirs, can recover those funds, even years later.
Before an asset is reported to the state, the financial institution is legally obligated to contact the customer account holder multiple times over a period of time—typically six months to a year—to give them the opportunity to reclaim their property. Only after these due diligence efforts fail does the institution report the asset to the state, where it is held safely on the consumer’s behalf. In California, the State Controller’s Office manages this process and conducts audits to ensure financial institutions comply with both the letter and spirit of the law.
AB 1052 simply brings California’s unclaimed property framework into the modern era by explicitly including digital assets like cryptocurrencies. Contrary to fears of government “control,” the bill does not authorize the state to confiscate cryptocurrency that is actively maintained by its rightful owner. Instead, it ensures that digital assets left dormant for an extended period of time are held by the state in their native form—rather than being prematurely liquidated—until claimed by their rightful owner.
This is a meaningful improvement. Imagine a situation where a consumer’s forgotten crypto is converted to cash by a crypto exchange before being turned over to the state—only for the asset’s price to soar later. That consumer would lose the benefit of any future appreciation. AB 1052 prevents this by requiring digital assets be preserved, giving consumers the full upside of their original holdings.
In short, AB 1052 doesn’t create new government power—it updates an old, widely accepted consumer protection law to reflect new technology. Crypto businesses, like all financial institutions, have long been required to participate in unclaimed property programs. Far from a regulatory overreach, this bill represents a practical, pro-consumer (and pro-HODLer) step forward that provides clarity for businesses and protection for Californians in the digital age.
It’s time to shift the narrative: AB 1052 isn’t a threat to crypto—it’s a recognition of its importance and permanence in our financial ecosystem.
