Virginia Approves Law Requiring State to Hold ‘Unclaimed’ Crypto in Original Form for One Year
Virginia has created a new framework for unclaimed digital assets, which requires the state to hold dormant cryptocurrency in its original form for a set period of time before any sale.
Governor Abigail Spanberger signed House bill 798 on April 14, marking a change in the way the state handles abandoned crypto accounts. The measure will take effect on July 1, 2026, and revises Virginia’s local unsolicited law to include digital assets.
Under the law, cryptocurrency stored in customer accounts that do not show anything for five years will be considered abandoned and transferred to government custody. Unlike previous practices in many jurisdictions, assets must be transferred “in kind,” meaning the state takes actual tokens rather than converting them into cash when they receive them.
This change addresses long-standing concerns of crypto users and industry firms. In many cases, states have frozen digital assets immediately after seizure, leaving owners who later recover funds only in cash at the time of sale. That approach exposed plaintiffs to the risk of shortfalls in profits during market upswings.
Virginia must hold crypto for one year
A new Virginia law aims to reduce that risk. It requires the state to hold digital assets for at least one year before any liquidation. At that time, previous owners can reclaim their property in its original form if it remains unsold, or receive the proceeds of the sale or the market value at the time of the claim, whichever is greater.
The law defines digital assets as representations of value used as a medium of exchange, unit of account, or store of value, while excluding certain items such as game currencies and non-transferable prizes.
It also describes what the owner’s activity is, including transactions, account access, or other actions that indicate account awareness, all of which reset the sleep time.
Custody rules depend on the holder, such as a crypto exchange, controlling the private keys tied to the assets. If there is full control, the owner must transfer the goods directly to the government. If control remains partial, the owner must keep the goods until the transfer is known. The law also allows the state to direct liquidation in cases where it cannot safely store certain assets.
The industry response has been positive. Paul Grewal, Coinbase’s chief legal officer, said the measure ensures that digital assets are treated in a way that preserves their original form during the unwanted asset process.
Virginia joins a growing number of states that have moved to revise their unwanted property laws to address digital assets. States like California have adopted similar measures, although the methods differ in that assets must be liquidated or treated in the same way.
For crypto companies operating in Virginia, the law introduces new compliance requirements related to reporting, custody, and transfer procedures.
For users, it provides strong protection against forced termination and a clear way to reclaim assets that fall into hibernation.
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