California SB 822 Integrates Unclaimed Crypto Under State Law
California SB 822, signed in October 2025, brings unclaimed cryptocurrency under California’s Unclaimed Property Law. Under the new rules, custodians must notify owners six to 12 months after three years of inactivity. If no claim is made, assets are transferred in their native form within 30 days to a state-appointed custodian. The law prevents forced liquidation that could trigger taxable events. Compliance obligations include detailed reporting, secure key custody and exclusion of self-custodied wallets. Traders should note that the move enhances legal clarity and consumer protection, potentially boosting market confidence in major assets like Bitcoin (BTC) and Ethereum (ETH).
Bullish
California SB 822’s regulatory clarity reduces legal uncertainty for custodians and investors. In the short term, this clarity may encourage custodial platforms to hold more assets and increase trading volumes. Over the long term, protection of native assets should boost user confidence, supporting price stability and gradual appreciation. By preventing forced liquidations, the law avoids sudden sell pressure. Overall, this environment is likely to have a bullish effect on major cryptocurrencies like BTC and ETH.