California May Take Your Bitcoin After 3 Years of Inactivity

California just passed a crypto bill that could grab your idle Bitcoin if left untouched.

New Crypto Law Moving Forward
On June 3, California lawmakers voted 78-0 to approve Assembly Bill 1052.
It says if your crypto account stays inactive for three years, the state can take it.

“Inactive” means no buying, selling, depositing, or even logging in.

The state considers this “unclaimed property.” That means they can move your crypto to a licensed custodian. But here’s the twist—they won’t sell it. They’ll keep it as crypto.

You’ll Still Get Your Bitcoin Back
Eric Peterson from Satoshi Action Fund helped draft the bill.
He says the idea is to preserve your crypto in its original form.
So when you claim it later, you get back Bitcoin—not dollars.

He explained that other states already do this with old bank accounts.
This law just updates the rules for crypto.

Crypto Payments Also Get a Boost
The bill also says people and businesses in California can now accept crypto as payment for goods and services.

That means more legal ways to use your coins—finally.

License Required, Self-Custody Unaffected
Starting July 1, 2026, anyone doing crypto business must be licensed—unless exempt.
But if you self-custody your crypto (aka hold your own keys), you’re not affected.

Social Media Reacts
Some online called it government overreach. Others said people misunderstood the bill.
Peterson insists it’s a fix—not a crypto grab.

(footing: “Unclaimed property” laws let the state take assets after long inactivity. “Custodian” = someone who holds your assets securely.)