Virginia has amended its unclaimed property law to include digital assets and limit how quickly the state can dispose of them. Governor Abigail Spanberger signed House Bill 798, which updates the Disposition of Unclaimed Property Act to require custodians of unclaimed digital assets to transfer those assets in-kind—meaning the assets must be turned over in their original crypto form rather than immediately liquidated into cash.
The law also sets a minimum holding period before sale: the administrator may direct liquidation of reported but unremitted digital assets only not less than one year after the filing of a report. By keeping crypto in-kind and delaying potential sales, the state reduces the risk of forced liquidations at depressed prices and preserves upside for owners who later reclaim their property.
HB 798 places digital assets squarely within Virginia’s unclaimed property framework and specifies when accounts are considered abandoned: a five-year inactivity period applies unless the owner demonstrates engagement, such as logging in or transacting. The change aligns Virginia with other states that have moved to cover crypto under escheat rules—Arizona 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 also passed legislation bringing digital assets into its unclaimed property statutes.
Industry reaction included praise from Coinbase chief legal officer Paul Grewal, who noted the statute update ensures digital assets are escheated in-kind. The Virginia Blockchain Council described the measure as an important modernization of state financial law that signals continued engagement with emerging technologies.
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