Bill > AB2335

This bill establishes a framework for handling unclaimed digital financial assets, which are defined as digital assets like cryptocurrencies. It creates a "Digital Asset Reserve Fund" where these assets will be deposited. Holders of digital assets must notify owners that if their assets become unclaimed for a specified period (generally three years), they will be transferred to the state and placed in this fund. The bill mandates that the State Controller convert these digital assets into "high-quality digital assets" (defined as those with a market capitalization of at least $100 billion) between 18 and 20 months after they are reported as unclaimed. Owners who make a valid claim before this conversion can receive their assets in their original form or in traditional currency. The bill also authorizes the Controller to engage "qualified staking service providers" to "stake" (commit to a blockchain network to support its operation) unclaimed digital assets to earn rewards, which will also go into the Digital Asset Reserve Fund. A new "Digital Asset Reserve Board" will be established to oversee the fund's administration, including setting guidelines for asset valuation and investment policies, with a focus on risk management for staking activities. The Controller is also required to publish quarterly reports detailing the fund's holdings, staking activities, and any losses from "slashing" events (penalties imposed by blockchain protocols for validator misconduct). This legislation aims to clarify how digital financial assets are treated under existing unclaimed property laws and to manage them in a way that potentially preserves or grows their value.

Budget and Finance, Justice

https://leginfo.legislature.ca.gov/faces/billStatusClient.xhtml?bill_id=202520260AB2335