Virginia Enacts Law Requiring State to Hold ‘Unclaimed’ Crypto in Original Form for One Year

Virginia has enacted House Bill 798, a new law that updates its unclaimed property statute to include digital assets. Effective July 1, 2026, the law requires the state to hold dormant cryptocurrency, presumed abandoned after five years of inactivity, in its original form for at least one year before any liquidation. This "in-kind" transfer aims to protect owners from missing potential gains during market increases, as previously many states would liquidate assets into cash upon receipt. If an owner reclaims their property within the year, they can receive it in its original form if unsold, or the greater of sale proceeds or market value at the time of claim. The law defines digital assets and outlines owner activity that resets the dormancy period. Custody rules vary based on the holder's control over private keys. Industry reaction has been positive, with Coinbase's chief legal officer noting the preservation of native form. Virginia joins other states updating unclaimed property laws for digital assets, though approaches differ.

(Source：Bitcoin Magazine)