California passes SB 822, protecting unclaimed cryptocurrencies from forced liquidation

California Governor Gavin Newsom has signed SB 822, making California the first state to explicitly protect unclaimed cryptocurrency from forced liquidation. The bill requires digital assets to be kept in their native form rather than converted to cash before being surrendered to the state. Under the new regulations, asset holders must notify asset owners 6 to 12 months before the transfer and transfer the asset type, private key, and amount to a cryptocurrency custodian designated by the State Controller within 30 days of the final reporting date. The State Controller can convert unclaimed cryptocurrency into fiat currency 18 to 20 months after filing, and valid applicants can recover the original assets or sell the proceeds. (Decrypt)