Virginia to hold dormant crypto ‘in-kind’ for at least one year under new law

Virginia has enacted House Bill 798, which updates its unclaimed property statute to include digital assets. Effective July 1, 2026, dormant crypto assets in customer accounts, inactive for five years, will be transferred to state custody in their original form ('in-kind'). This means the actual tokens will be held for at least one year before any potential liquidation, a departure from historical practices where states often immediately converted unclaimed crypto to cash. This change is welcomed by the crypto industry, with Coinbase's chief legal officer Paul Grewal noting it ensures assets are escheated in-kind. The bill defines 'digital assets' broadly but excludes certain items like non-cashable rewards and in-game items. Virginia's move follows similar legislation in other states, such as California.

(Source：The Block)