Virginia signed a law bringing digital assets into unclaimed property rules, requiring in-kind transfer and limiting how quickly the state can sell them.
The US state of Virginia has approved changes to its unclaimed property framework, bringing digital assets under state custody rules while limiting how soon those assets can be sold.
On Monday, Governor Abigail Spanberger signed House Bill 798 into law. The measure amends the state’s Disposition of Unclaimed Property Act, requiring custodians of unclaimed crypto to transfer those assets in-kind, meaning in their original form, rather than liquidating them into cash.
The law also imposes a minimum one-year holding period before any sale. “The administrator may subsequently direct such holder of unclaimed digital assets to liquidate the reported but unremitted digital assets not less than one year following the filing of a report,” the bill reads.
By holding crypto in-kind, the state reduces the risk of forced sales at unfavorable prices or during downturns, offering potential upside for owners who later reclaim their assets.
With the measure, Virginia joins a growing group of states that have included digital assets within unclaimed property laws. In May last year, Katie Hobbs signed a law allowing Arizona to take ownership of unclaimed crypto after three years and place it into a state-managed reserve fund. California has also passed a bill bringing crypto under the state’s unclaimed property laws.
Source: Virginia GovRelated: Alabama becomes second US state to grant DAOs legal status under DUNA
Virginia sets five-year clock for abandoned crypto accounts
The bill further clarifies when crypto accounts are deemed abandoned, setting a five-year inactivity period unless the owner shows signs of engagement, such as logging in or conducting transactions.
“Some good news out of Virginia,” Paul Grewal, chief legal officer of Coinbase, wrote on X, adding that the law “updates the state’s unclaimed property statute to cover digital assets and ensures they are escheated in-kind.”
Related: West Virginia lawmaker introduces bill to allow state crypto investments
Virginia Blockchain Council previously called the bill “an important step,” claiming that it “helps modernize Virginia’s financial laws and signals the Commonwealth’s continued engagement with emerging technologies.”
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Source: https://cointelegraph.com/news/virginia-updates-law-in-kind-crypto-custody-delay-liquidation-one-year?utm_source=rss_feed&utm_medium=feed&utm_campaign=rss_partner_inbound
