SACRAMENTO — August 4, 2025. Lawmakers approved SB 822 (Sen. Josh Becker), a measure that updates California’s Unclaimed Property Law (UPL) to explicitly cover digital financial assets—including crypto held with custodial platforms. The bill outlines how holders must track inactivity, notify apparent owners, report dormant assets, and transfer custody to the State Controller’s Office (SCO), while preserving owners’ rights to reclaim value.

Purpose: modernize UPL so that digital value is treated consistently with other intangible property and can be reunited with its owners.

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What SB 822 changes (at a glance)

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• Digital assets defined as intangible property.
  The bill treats “digital financial assets” as intangible personal property for UPL purposes. The definition covers digital representations of value used as exchange or store-of-value, while excluding SEC-regulated securities, loyalty rewards, and in-game currencies.
  
  
• Dormancy period & owner activity.
  Assets held by a custodial intermediary (e.g., an exchange) become reportable after 3 consecutive years with no owner activity. Actions that reset dormancy include:
  
  
  • Signing into the account
    
  • Completing a transaction
    
  • Responding to official notices from the holder
    
    
• Advance notice to owners.
  Between 6 and 12 months before reporting, holders must send written or electronic notice (if the owner has consented to e-delivery). Notices must plainly warn that the property will be transferred to the state absent action.
  
  
• Reporting and transfer to the State Controller.
  Once property is deemed abandoned and reported, holders have 30 days after the final report to deliver assets to the SCO. Transfer should occur in the original digital form. The Controller may decline custody within 120 days if accepting the asset is not in the state’s best interest and must notify the holder if declining.
  
  
• Secure custody & perpetual owner claims.
  The Controller may designate qualified custodians to safeguard digital assets. No statute of limitations applies: owners can claim either the asset itself or its liquidated value at any time.
  
  

Why it matters
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SB 822 is intended to:

• Create a predictable path for reuniting owners with dormant digital value
  
• Clarify holder obligations for exchanges and other custodians
  
• Align digital assets with the existing UPL framework to reduce ambiguity for consumers and companies
  
  

Fiscal note: Implementation is projected to grow resource needs over time, with an estimated ~$1.8M annually by FY 2029–30, funded through the Unclaimed Property Fund.

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Legislative status (as of Aug. 4, 2025)
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• Passed the Senate (May 29, 2025) with unanimous support
  
• Advanced through Assembly committees
  
• Awaiting the Governor’s signature
  
  

Additional materials (for reference)

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• Senate Judiciary analysis (bill analysis)
  
• Fiscal/policy analysis
• Bill tracker for SB 822