The California State Assembly passed AB-1052, which proposes that cryptocurrency assets that have not been operated for three years can be held in custody by the state government.

PANews reported on June 5 that, according to Decrypt, the California House of Representatives passed the AB-1052 bill with 78 votes in favor and 0 votes against, proposing to treat crypto assets with no record of operation within three years as unclaimed property and be held in trust by the state government. The bill makes it clear that assets will not be liquidated, but will remain in encrypted form in the custody of a third party, and users can claim them at any time. Proponents say the mechanism is similar to traditional unclaimed property regulations and is intended to protect users’ assets; Critics worry that it violates Bitcoin’s ethos of privacy and self-custody. The draft bill will now go to the California Senate with possible further revisions.