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California Legislature Passes SB 822 to Include Digital Financial Assets in Unclaimed Property Law

SACRAMENTO, August 4, 2025 – The California Legislature has approved Senate Bill 822 (SB 822), authored by Senator Josh Becker, to amend California's Unclaimed Property Law (UPL), explicitly incorporating digital financial assets such as cryptocurrencies into existing statutes. The bill provides clear procedures and obligations for asset holders and establishes a framework to safeguard the rights of owners seeking to reclaim dormant digital property.

Senate Bill 822 Analysis Document:
Read the Senate Judiciary Committee Analysis


Key Provisions of SB 822

Definition and Scope

SB 822 formally classifies digital financial assets as intangible personal property under the Unclaimed Property Law. Digital financial assets are broadly defined as digital representations of value used as a medium of exchange or store of value, explicitly excluding securities regulated by the SEC, loyalty rewards, and in-game currencies.

Dormancy and Reporting Requirements

Assets held by a custodial entity such as a cryptocurrency exchange become subject to escheatment if there has been no activity or indication of ownership by the account holder for a period of three consecutive years. Activities that reset the dormancy clock include:

  • Logging into the account
  • Executing transactions
  • Responding to official holder notifications

Notification Procedures

Holders of digital financial assets must send formal written or electronic notices (with prior owner consent) to apparent owners between 6 and 12 months before escheatment. Notices must prominently include a statement notifying recipients of impending transfer to the state if no action is taken.

Transfer of Assets to the State Controller

Once deemed abandoned, digital financial assets must be transferred to the State Controller’s Office within 30 calendar days of the holder's final reporting date. The assets must remain in their original, digital form. Upon receipt, the Controller maintains the discretion to refuse custody if it is determined to not be in the state's best interest, provided notification of refusal is given within 120 days.

Custodianship and Reclamation

The Controller may appoint one or more qualified custodians to securely manage the digital assets in custody. Owners retain perpetual rights to reclaim these assets or their liquidated value. No statute of limitations exists for reclaiming escheated digital financial assets.


Intended Impacts and Benefits

SB 822 modernizes the Unclaimed Property Law to:

  • Ensure rightful owners can reclaim dormant digital assets
  • Clarify responsibilities and compliance requirements for custodial entities managing digital assets
  • Harmonize digital asset regulations within California's existing unclaimed property framework

Implementation is expected to incrementally increase resource needs, with an estimated cost of approximately $1.8 million annually by fiscal year 2029–30, funded through the state’s Unclaimed Property Fund.

Full Legislative Analysis:
Read the Full Fiscal and Legal Analysis


Legislative Progress

SB 822 passed unanimously in the California Senate on May 29, 2025, and has successfully advanced through Assembly committees. It currently awaits final signature by Governor Newsom.

Track Legislative Progress:
Track SB 822 on FastDemocracy


Additional Resources