California's Bill AB 1052 has been passed with a vote of 78-0, allowing the state to hold unclaimed crypto assets for over three years on exchange platforms. The bill has sparked mixed reactions on social media.
What Bill AB 1052 Entails
The bill requires that cryptocurrencies unclaimed for a period of three years must be held on exchanges. If signed into law, it subjects these assets to unclaimed property laws similar to bank accounts and safe deposit boxes. However, the state will not have the authority to liquidate these assets; they can only be held by a custodian for customers to reclaim.
Opinions from Authors and Experts
According to the bill's author Eric Peterson, the legislation applies only to third-party exchanges and not to private custody. He explained that if an exchange fails to reach out to a client for over three years, it could potentially liquidate the user's assets. Peterson emphasized that the bill aims to address potential issues where assets might be turned over to state custody instead of liquidated.
Additional Bills and Their Impact
California's AB 1180 has also passed, which requires the Department of Financial Protection and Innovation to create rules allowing state transactions to be conducted using cryptocurrencies. This legislation will regulate the use of digital assets and protect consumers. Similar trends are being seen in Colorado, Florida, and Louisiana, which are actively incorporating blockchain technology into their processes.
Bills AB 1052 and AB 1180 in California pave the way for new regulations regarding cryptocurrencies, ensuring consumer protection and easier access to digital assets.
