The US government shutdown is impacting the cryptocurrency sector. While ETF decisions for many altcoins like Solana (SOL) and XRP have been delayed due to the government shutdown, positive news has come from the state of California.
California, one of the largest states in the US, has officially passed a bill to hold unclaimed cryptocurrencies instead of selling them.
California Governor Gavin Newsom has signed two bills, AB 1052 and SB 822, that incorporate cryptocurrencies into the state's unclaimed property laws, The Block reported.
Accordingly, the state officially passed a bill requiring dormant virtual assets (cryptocurrencies) that have not been traded for more than 3 years to be preserved in their original form rather than being forcibly sold.
Under the new law, unclaimed cryptocurrencies held on custody platforms like exchanges will be transferred to the State Auditor's Office after three years of inactivity.
According to these laws, the state must not immediately liquidate dormant crypto assets like Bitcoin (BTC) and Ethereum (ETH) but must securely store them through designated custodians (qualified custodians). However, if the owner of an unclaimed account does not appear for 18-20 months or more after it is reported AND does not file a claim with the State Auditor's Office, the cryptocurrencies involved are considered unclaimed, and the assets may be sold and converted to fiat currency.
“I am grateful that Governor Newsom is preventing Californians from liquidating their cryptocurrencies without their consent,” Coinbase chief legal officer Paul Grewal said in a post. “California now has a legal framework that protects staking rights, alongside 46 other states and the SEC.”
*This is not investment advice.