Virginia crypto unclaimed property law mandates in-kind transfers

Virginia crypto unclaimed property law (HB 798) was signed by Gov. Abigail Spanberger on Apr. 13, 2026 and takes effect July 1, 2026. The Virginia crypto unclaimed property law requires exchanges and custodians to escheat dormant accounts by transferring digital assets “in-kind” (native tokens), not by liquidating to cash. Key mechanics: accounts are presumed abandoned after 5 years of inactivity. Any ownership-related action—trading, account access, or communication with the custodian—resets the 5-year clock. If the custodian controls full private keys, it must deliver the token itself; with only partial keys, it must keep the asset until a full transfer is possible. After the state receives assets, it must hold them for at least 1 year before any sale. If claimants apply during the first year, they can choose either sale proceeds or the market value at the time of the claim (whichever is higher). The law excludes non-transferable items (e.g., some in-game assets) and does not apply to non-custodial self-custody wallets. Traders’ take: industry support, including Coinbase CLO Paul Grewal, highlights reduced forced-selling risk at unfavorable prices. Near-term market impact is likely limited because this is a single-state rule, but it may improve expectations for long-term custody handling and reduce sell-pressure from state liquidation frameworks elsewhere. Legislative note: HB 798 passed the Virginia House 96–2 and the Senate 40–0. Critics warn the “abandoned” definition could sweep in long-term holders and that low claim rates plus audit incentives may increase aggressive classification.