State Controller outlines SB 822 implementation plan for unclaimed digital assets

State Controller Malia Cohen told the Assembly Banking Committee on digital asset innovation that Senate Bill 822 establishes clear procedures for reporting, safeguarding and returning unclaimed digital assets held by third‑party custodians.

"The bill created a clear legal framework for how abandoned digital assets were reported, how they were safeguarded, and most importantly, how they were returned," Cohen said. She emphasized the law treats virtual currency as unclaimed intangible property and applies only to custodial arrangements such as exchanges and banks, not private wallets.

Under SB 822, an account that shows owner‑initiated activity within a three‑year lookback cannot be deemed abandoned. Cohen said the statute defines "contact" broadly and that a single log‑in can reset the inactivity clock. Holders (the custodial exchanges and institutions) have the primary responsibility for locating missing owners and must undertake outreach before…