Committee advances bill to bring digital assets under Utah’s unclaimed property law

Representative Tesher brought HB 519 to the House Economic Development and Workforce Services Committee on Feb. 17, proposing statutory guidance for how the state should treat digital assets reported as unclaimed property.

State Treasurer Marlow Oakes said the legislation "fills a gap in Utah's unclaimed property law by establishing a clear statutory framework for how the state should handle digital assets," and added the bill authorizes the unclaimed property division to procure a designated custodian to hold digital assets securely. Under the proposal, if the state secures an appropriate custodian it may hold digital assets in kind for three years to facilitate return to rightful owners; if custody is not feasible, the bill allows liquidation.

Anders Johnston, the Unclaimed Property Administrator, told lawmakers the state would not take custody of assets unless the private key or access was included in the reported property: "We would not be receiving assets into our office unless that key was also included in what's reported to the state, and a custodian would have that so that we could be able to move it where it belongs." Committee members pressed on whether three years is sufficient for assets that are often held long term; presenters said the statute includes typical dormancy periods and that the three‑plus‑three timeline results in roughly six years of owner inactivity before liquidation.

Industry witnesses supported the bill in committee. "This legislation modernizes Utah's unclaimed property framework by creating parity between digital assets and traditional financial assets," said McKenna Plowman of Coinbase, who also emphasized operational clarity for exchanges and better protection of long‑term value for owners. Other commenters, including an individual county commissioner and representatives of the Utah Blockchain Coalition, urged the state to consider implementation details and noted the bill would also help local governments custody seized crypto.

Representative Fiafia moved Amendment 1 to broaden drafting language (removing the word "stock" to ensure coverage for digital asset types); the amendment was adopted unanimously. The committee then voted unanimously to favorably recommend HB 519 as amended and placed it on the consent calendar.

The bill implements a statutory framework consistent with the Revised Uniform Unclaimed Property Act language on dormancy and reporting, while adding operational guidance specific to digital assets and custody.