On October 11, 2025, California Governor Gavin Newsom signed legislation that subjects digital financial assets to the Unclaimed Property Law. (L. 2025, S822 (c. 660), effective 01/01/2026.)

The California Legislature clarifies that digital financial assets are intangible property that are subject to the unclaimed property law. “Digital financial asset” has the same meaning as in subdivision (g) of Section 3102 of the Financial Code. Pursuant to Cal. Civ. Proc. Cd. § 1510, any digital financial asset held or owing by a business association escheats to California if unclaimed by the owner for more than three years from either of the following: (1) the date a written or electronic communication to the owner is returned undelivered by the U.S. Postal Service or by electronic mail or other electronic messaging method, as applicable; or (2) the date of the last exercise of an act of ownership interest by the owner in the digital asset account if the owner does not receive written or electronic communications from the holder or the holder does not have the means of systematically tracking or monitoring the non-delivery of those communications.

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