Digital financial assets.

Plain English Breakdown

The official source material does not specify whether the Controller is required or authorized to appoint a licensed custodian, only that such an appointment should occur no later than January 1, 2027.

Digital Money Rules

This law sets rules for digital money in California, including licensing requirements for businesses that deal with it after July 1, 2026 and how unclaimed digital assets are handled.

What This Bill Does

• Requires people who want to do business with digital financial assets to get a license from the Department of Financial Protection and Innovation on or after July 1, 2026.
• Allows individuals or businesses in California to accept digital money as payment for goods and services.
• Defines when unclaimed digital financial asset accounts become property of the state if they are inactive for three years.
• Requires holders of private keys for escheated digital financial asset accounts to transfer these assets to a custodian appointed by the Controller.

Who It Names or Affects

• Businesses and individuals dealing with digital financial assets in California
• People who have unclaimed digital financial asset accounts

Terms To Know

Digital Financial Assets

Money or value that exists digitally, like cryptocurrencies.

Escheat

When property without an owner becomes the property of the state after a period of time.

Limits and Unknowns

• The bill does not specify what happens if someone is exempt from getting a license.
• It's unclear how the law will be enforced or what penalties there are for breaking it.
• Details about the custodian’s responsibilities and qualifications are not fully explained.

Official Summary Text

AB 1052, as amended, Valencia.
Digital
financial
assets.
The Digital Financial Assets Law generally regulates digital financial assets and digital financial asset business activity. On or after July 1, 2026, the law prohibits a person from engaging in digital financial asset business activity unless the person is licensed by the Department of Financial Protection and Innovation or is exempt from that licensure requirement, as specified.
This bill would authorize an individual or business located within this state to accept payment in the form of a digital financial asset for the sale of any goods or services, and it would deem the use of a digital financial asset as a form of payment in a private transaction to be valid and legal consideration.
The Unclaimed Property Law provides that all intangible personal property of an apparent owner whose last known address or domicile was in the state, including intangible personal property maintained in a deposit or an account, which is held in a fiduciary capacity for the benefit of another person, escheats to the state if for more than 3 years after it becomes payable or distributable, the apparent owner has not taken specified actions showing an interest in or control of the property.
This bill would provide that intangible property held in a digital
financial
asset account escheats to the state 3 years after either written or electronic communication to the owner is returned undelivered, or the date of the last exercise of ownership interest, as defined, by the owner. The bill would require the holder of a private
key for a digital
financial
asset account that has escheated to the state to transfer the digital
financial
asset to
a custodian designated by
the Controller. The bill would
require
authorize
the Controller to appoint a custodian
no later than January 1, 2027, as specified.
that holds a valid license issued by the Department of Financial Protection and
Innovation, as specified.

Current Bill Text

Download Bill PDF