California’s new law states that abandoned Bitcoin can’t be immediately sold by the state, which may ease recovery and lower burdens on exchanges.
Over the weekend, California Governor Gavin Newsom signed a bill into law that preserves abandoned Bitcoin (BTC) holdings — a step forward that could provide legal clarity for custodians and crypto holders.
The bill was an update to unclaimed property law (UPL) and contained one key provision: Abandoned Bitcoin or crypto holdings that are transferred to the state must be maintained in their original format (not sold for cash) for a certain amount of time.
States with similar laws require that crypto be liquidated into cash immediately. This can create difficulties for recovering lost property and also creates administrative burdens for exchanges and crypto custodians.
