California passes a bill allowing the confiscation of "idle" Crypto Assets.

According to a report by Decrypt on June 5, Deep Tide TechFlow announced that the California House of Representatives passed the AB-1052 bill with a unanimous vote of 78-0 on Tuesday. The bill states that if Crypto Assets holders do not demonstrate "ownership interest" in their assets for three consecutive years, the state government may take over these "unclaimed" digital assets. The so-called "ownership actions" include conducting transactions or electronically accessing accounts.

Unlike the concerns raised on social media, supporters of the bill emphasize that the seized Crypto Assets will be held in their original form by custodians, rather than being liquidated by state governments. Holders can claim their assets back at any time, avoiding the risk of forced sale under unfavorable market conditions.

The bill essentially incorporates Crypto Assets into the same unclaimed property law framework as traditional assets (such as bank accounts and safes). The bill has been submitted to the California Senate for further consideration and may be amended, rejected, or passed as is.