Virginia has amended its unclaimed property law to explicitly cover digital assets and to limit how quickly the state can dispose of them. Governor Abigail Spanberger signed House Bill 798, updating the Disposition of Unclaimed Property Act to require custodians of unclaimed digital assets to transfer those assets in-kind—that is, in their original crypto form—rather than immediately liquidating them into cash.
The law also imposes a minimum holding period before the state may direct a sale: reported but unremitted digital assets can be liquidated only not less than one year after the filing of a report. By preserving assets in-kind and delaying possible liquidation, the statute aims to reduce the risk of forced sales at depressed prices and to protect potential appreciation for owners who later reclaim their property.
HB 798 brings digital assets squarely into Virginia’s unclaimed property framework and defines abandonment timing. Accounts are presumptively abandoned after five years of inactivity unless the owner can show engagement—such as logging in or transacting—during that period.
The change brings Virginia in line with other states that have adapted escheat rules for crypto: Arizona earlier enacted a law allowing the state to take ownership of unclaimed crypto after three years and place it into a state-managed reserve, and California has passed legislation integrating digital assets into its unclaimed property statutes.
Industry response was generally positive. Coinbase chief legal officer Paul Grewal praised the update for ensuring escheatment occurs in-kind, and the Virginia Blockchain Council called the measure an important modernization of state financial law that signals continued engagement with emerging technologies.
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