California Passes Bill on Unclaimed Crypto, Merchant Pay
Fhumulani Lukoto
- 2 min read
Key Takeaways
Unclaimed Crypto Covered: California’s AB 1052 allows the state to take custody of dormant crypto accounts after three years of inactivity, holding assets in their original form.
Merchant Crypto Payments Legalised: The bill authorises businesses and individuals in California to accept cryptocurrency for goods and services.
Licensing Requirement Introduced: Entities dealing with digital assets must obtain a licence from the Department of Financial Protection and Innovation unless exempted.
California is taking significant steps toward integrating cryptocurrency into its legal and financial systems.
Overview
On June 3 2025, the State Assembly unanimously passed Assembly Bill (AB) 1052 in a 78-0 vote. This comprehensive measure addresses unclaimed digital assets and merchants’ acceptance of crypto payments. This bipartisan initiative reflects California’s evolving stance on digital finance, balancing innovation with consumer protection.
Safeguarding Unclaimed Crypto Assets
AB 1052 extends California’s unclaimed property laws to encompass digital assets. Under this bill, the state can assume custody of the assets if a crypto exchange account remains inactive for three years—without transactions, logins, or other indications of ownership. Importantly, these assets will be held in their original crypto form, not converted to fiat currency, allowing owners to reclaim them without loss due to liquidation.
This approach protects consumers by preserving dormant digital assets and returning them to owners. Eric Peterson, policy director at the Satoshi Action Fund, emphasised that the bill updates existing unclaimed property laws to accommodate digital assets, ensuring they are held securely and not sold without consent.
Empowering Merchants with Cryptocurrency Payments
Beyond addressing unclaimed assets, AB 1052 authorises California businesses and individuals to accept cryptocurrencies as payment for goods and services. This provision legitimises using digital currencies in everyday transactions, fostering broader adoption and integration into the state’s economy.
To ensure consumer protection and regulatory compliance, the bill stipulates that entities engaging in digital financial asset activities must obtain a licence from the Department of Financial Protection and Innovation (DFPI) unless exempted. This licensing requirement establishes a clear regulatory framework for crypto transactions within the state.
Next Steps and Broader Implications
Having passed the Assembly with a 78-0 vote, AB 1052 moves to the California Senate for consideration. If Governor Gavin Newsom approves and signs into law, the legislation will take effect on July 1 2026. This timeline allows stakeholders to adapt to the new regulatory landscape.
In parallel, California is advancing Assembly Bill 1180, permitting state agencies to accept crypto payments for certain obligations. This bill complements AB 1052 by expanding the use of digital currencies within public sector transactions, signalling California’s commitment to embracing financial innovation.
Together, these legislative efforts position California at the forefront of cryptocurrency regulation and adoption in the United States. The state aims to foster a secure and inclusive financial environment that accommodates emerging technologies by addressing the management of unclaimed digital assets and facilitating crypto payments.
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Fhumulani Lukoto
Cryptocurrency Journalist
Fhumulani Lukoto holds a Bachelors Degree in Journalism enabling her to become the writer she is today. Her passion for cryptocurrency and bitcoin started in 2021 when she began producing content in the space. A naturally inquisitive person, she dove head first into all things crypto to gain the huge wealth of knowledge she has today. Based out of Gauteng, South Africa, Fhumulani is a core member of the content team at Coin Insider.