California’s Lower House passes a sweeping bill that pays crypto payment which will also allow the state to take idle crypto holdings from exchanges if an owner has not access their account for three years.
The California State Assembly passed The Assembly Bill (AB) 1052 on a 78-0 vote on June 3, which would be subject to crypto in unusual state-owned laws and allow California to have a crypto in a user exchange account if it had not performed “an act of interest in ownership” for three years.
These actions include making a transactions such as buying or sale.
The rest of the bill will allow California individuals or businesses to accept crypto as a form of payment for goodsServices and the use of crypto in private transactions.
🇺🇸 Only: California assembly passes the bill to arrange digital assets under the ‘unclaimed property’ law.
The bill is now moving to the Senate.
The law explains: Assets left in an exchange of 3 years will be transferred to the state, and then claimed with -owner. pic.twitter.com/u9xfto0xry
– Bitcoin Laws (@bitcoin_laws) June 4, 2025
The bill is now headed to the California Senate, where it can be changed, rejected or passed to Governor Gavin Newsom to sign in the law or veto.
If passed, the law will take effect on July 1, 2026, and anyone without an exemption from participating in the business activity of the digital financial property is prohibited except if the Department of Financial Protection and Innovation is licensed.
Crypto users are mixed -halang to bill
Opinions on the new law are mixed with all over social media with critics calling for the bill that is an excessive power, while others have argued that there was a misconception about what the points of the bill wanted to achieve.
Eric Peterson, a policy director in Pro-Bitcoin Nonprofit organization satoshi action fundthat helped in the draft of an earlier version of the law, Says There are some “misunderstandings.”
“What it does is update unspecified laws so when your bitcoin is turned on as unimaginable ownership from an exchange, it will remain in the form of bitcoin instead of liquid. You can return it from California to Bitcoin,” Says.
“Instead of selling your Bitcoin after 3 years of inactivity, carers should move your actual BTC to a licensed state caretaker,” Peterson added. “Bitcoin is held in native form, no longer converted to dollars.”
Related: California is advancing bill to accept crypto for state payments
California already has similar laws in place for inactive bank accounts and broker accounts or equivalent, according to Peterson. The new law also does not affect users who selected in self-custody their crypto.
The founder of Satoshi Action Fund Dennis Porter also chuckles, and Says It is important to “remember that many states have a similar broken process that need to be fixed.”
Hailey Lennon, a former regulatory advice on Crypto Exchange CoinbaseDin Says Similar laws are already in other states.
“Most states do not accept the laws to comply with the exchanges. It is returned to the owner when the owner reaches the state,” he said.
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