In a bold move that could reshape the landscape of digital asset management in the U.S., California has edged closer to enacting a bill that redefines how unclaimed cryptocurrency and merchant payments are handled. On June 4, 2025, state lawmakers advanced the legislation amid a flurry of online debate, aiming to modernize outdated unclaimed property laws and prevent the liquidation of digital currencies—a proposal drawing both applause and skepticism from various quarters.
Crypto Gets a Legislative Makeover
The bill, championed by proponents as a necessary evolution in response to the digital age, seeks to address the complexities surrounding unclaimed crypto holdings. Eric Peterson of the Satoshi Action Fund, a notable advocate for blockchain-friendly regulations, has lauded the effort. “It’s about time we update these laws. Cryptocurrencies shouldn’t be treated like other unclaimed assets,” Peterson emphasized, suggesting that liquidation of crypto could lead to significant value loss—an outcome the bill aims to avert by allowing digital assets to remain intact. This move mirrors efforts in other regions, such as the UK, where the FCA is actively seeking public and industry views on crypto regulation.
However, not everyone is convinced. Critics argue that the bill’s provisions could lead to regulatory overreach and unnecessary complications for both merchants and consumers. The debate underscores the broader tension between innovation and regulation that has long characterized the cryptocurrency sector. This tension is also evident in the U.S. Congress, which is bracing for intense debate over crypto legislation this summer.
Navigating the Regulatory Maze
For those unfamiliar, unclaimed property laws are designed to handle assets that remain unclaimed by their rightful owners after a specified period. Traditionally, such assets are liquidated, with proceeds held in trust by state governments. In the world of cryptocurrency, where values can fluctuate dramatically, this poses unique challenges. The proposed legislation in California aims to sidestep these pitfalls by establishing mechanisms to hold unclaimed crypto as is, potentially protecting both the asset’s value and the owner’s interests.
A closer look at the bill reveals a nuanced approach—one that attempts to balance protecting consumer rights with encouraging economic innovation. Supporters argue that this could set a precedent for other states, potentially leading to a more cohesive national strategy for digital asset management. Yet, with the crypto market’s notorious volatility, questions linger about how such a policy will be implemented effectively.
A History of Hesitation
This isn’t California’s first foray into cryptocurrency regulation. The state has previously grappled with how to integrate digital currencies into its economic framework, with mixed results. Past attempts at regulation have occasionally been met with resistance from the tech-savvy population that calls Silicon Valley home. The current bill, however, seems to be gaining traction, partly due to its focus on preserving asset value and minimizing bureaucratic hurdles.
As the legislative process unfolds, the bill’s progress will be closely monitored by industry stakeholders. Its potential implications are vast, extending to how businesses handle merchant payments and the role of state governments in digital asset management. “We’re watching closely,” an unnamed industry insider noted, hinting at the broader impact such laws could have on interstate commerce and international perceptions of U.S. crypto policy.
Future Prospects and Market Reactions
While the bill’s passage is not yet guaranteed, its advancement signals a growing recognition among lawmakers of the need to adapt traditional regulations to the digital economy. Whether this effort will bear fruit—or become another chapter in the storied history of crypto regulation—remains to be seen.
For now, the market’s response has been cautious. Prices of major cryptocurrencies have remained relatively stable, suggesting that traders are adopting a wait-and-see approach. However, should the bill become law, it could herald a new era of regulatory clarity, offering a model for other jurisdictions grappling with similar issues.
In the coming months, all eyes will be on California as it navigates this legislative journey. Will this be a turning point for crypto regulations in the U.S., or merely another step in a long and winding road? Only time will tell, but one thing’s certain: the conversation around digital assets is far from over.
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This article is based on: California advances bill on unclaimed crypto and merchant payments
Further Reading
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Steve Gregory is a lawyer in the United States who specializes in licensing for cryptocurrency companies and products. Steve began his career as an attorney in 2015 but made the switch to working in cryptocurrency full time shortly after joining the original team at Gemini Trust Company, an early cryptocurrency exchange based in New York City. Steve then joined CEX.io and was able to launch their regulated US-based cryptocurrency. Steve then went on to become the CEO at currency.com when he ran for four years and was able to lead currency.com to being fully acquired in 2025.
